The Research On Public University Debt Risk In China

Since 1999, With the leap-forward development of higher education, the conflict between needs of education budget in universities and government investment appears day after day. Our public universities generally direct towards debt development road, the"double-edged sword"- running schools in debt not only eases the financial pressure on universities, but also promotes rapid development in universities. With the result of running schools in debt, some negative influences appear. Universities have to carry on a heavy debt burden, and bear the huge pressure of repaying principal and interest. Breaking through the higher education domain, running schools in debt becomes complex social problems and arouses public attention. The research on development of running schools in debt in universities becomes an important issue now. Based on the analysis of existing documents and combined with the data of bank loans, this paper introduces the background and present situation of running schools in debt in universities. The paper also analyses the reason of debt in universities from multi-angle and resolves the risk characteristic and risk form of university debt. The author analyses root causes of debt which rising from debt scale of financial risk in public universities deeply, and makes some suggestions and methods which solves countermeasures of debt risk in universities from university, government and bank three aspects. At last, the author also proposes the basic ideas of constructing diversified financing reform system in higher education. Overall, the author proposed many valuable views in the whole easy, such as college capital stock, establishing the new universities of stock, as well as deepening the reform of policy-related suggestions.