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• The development of financial subsidies and digital finance can have a positive impact on the level of industrial investment. • Financial subsidies and digital finance can promote the level of industrial investment by easing the financial constraints of enterprises. • Enterprises should ensure the feasibility and profitability of investment projects based on the market environment they are in, in order to better formulate reasonable investment strategies. This study examined the impact of digital finance and financial subsidies on enterprises' industrial investment based on data from China A-share listed companies in Shanghai and Shenzhen from 2011 to 2020. Results show that the development of financial subsidies and digital finance positively impact industrial investment, further easing the financial constraints of enterprises. Based on results, suggestions such as rational resource usage and a clear investment direction are made. [ABSTRACT FROM AUTHOR]