Research On Financing Mechanism In China's Private Colleges And Universities

With the reform and opening up, especially in 1990s, and the continuous deepening of reform of higher education, as well as a series of educational policies introduced by the government, China's private higher education has gained rapid development and has made gratifying achievements. At present, China's private higher education has already begun to take shape. Not only the pattern of school diversity is taken into account, but also the diversity of disciplines in the educational level is rising. Today, private colleges and universities has become a major force in China's institutions of higher learning, and the development of higher education in China is playing an increasingly important role. At the same time, both the sustainable development of private universities and the sustainable development of China's higher education have become an important stabilizing force. Although the private higher education is developing in our country, there is also a series of problems existed in the private higher education. Gradually they hinder the further development. Among them, the most prominent of these issues is the financial constraint.It has proved that the development higher education needs a large amount of education funding, while the education funding for school supplies would determine the conditions of the college grades, and thus directly affects the teaching and research capacity, ultimately affecting the quality of personnel training. The development of private higher education also needs the support of education funding. Although private colleges and universities are institutions of higher learning in nature, with cultural characteristics and career, etc., with public goods properties; but privately-run colleges and universities is either an economic-oriented entity, or the pursuit of profit maximization "enterprise", which is also a need huge capital investment and financing support. The fact also shows that it has widespread demand for some funds gap in China's developing private colleges and universities. The problem of insufficient funding has become an important influencing factor which is constraining the development of private education, and it gradually restricted the development of China's major issues in higher education. As we are in need of promoting the development of private universities, it is necessary to solve the problem of insufficient funding. For this reason, this paper, drawn on results of theoretical studies, analyzed of the need for the financing of China's private colleges and universities, financial status and major problems existed in financing process. learnt from international experience and proposed private college financing objectives and principles to explore financing channels of China's private universities, financial institutions, the status of financial policy, as well as discussed one of the missing issues according to different stages of financing needs and characteristics of private colleges and universities, raised a new financing model of the concept of private universities with a view to optimize the financing mechanism for private colleges and universities in respect of achieving sustainable development goals of providing effective financing mechanism to safeguard.