On The Application Channels Of Capital Market To Funds Raising For Higher Education In China

21st Century is an age of knowledge economy and intellectual competition. Human capital is increasingly becoming the most important factor influencing the competitiveness at the core of a state. However, the level of scale and quality of human capital accumulation mainly depends on education of the state, especially on the development of higher education. In this sense, devoting major efforts to develop higher education, which shoulders the two fold tasks of talent cultivation and intellectual creation, is becoming the requirement of epoch trend and social development. But with the continual expansion in the scale of higher education and a rise in the average education cost, the shortage of funds for investment in higher education has become an international problem, which is especially evident in China and has seriously restrained the development of national economy and social progress.In market economy, capital market is the link between funds of supply-parties and demand-parties. Its powerful function of funds raising can collect large amount funds for higher education. In this way, the present paradox between the limited supply of higher education and the increasing growth of social demand can be effectively mitigated. At the same time, the development of higher education and its relative industry can bring capital market growth in profits and vigor in development. Therefore, in the present phase under which the serious shortage of funds for investment in higher education has become the principal contradiction, it is of highly realistic significance to have research on how to reform the maladies afflicting investment models of higher education, how to broaden channels of funds raising, how to link up higher education and capital market, how to take advantage of capital market to raise funds and to promote efficiency and profits of funds operation and how to make higher education a helper and a driving force of China's economy. This article analyses various channels and principal problems of linking up higher education along with its relative industry and capital market. In view of channels and problems, it suggests corresponding measures for improvement. These measures can be of strategic significance for improvement of higher education and promotion of human capital investment.