The Research On Capital Market Financing Of Private Universities In China

Since 1999, economic development to meet the needs of senior professionals and the people demand for higher education, expanding higher education, and gradually become the world's largest higher education organized by our country. On the other hand, constrained by the level of economic development, lack of government investment has resulted in China's higher education, both in scale and quality are difficult to further develop and improve. In this context, private universities have emerged as an important part of higher education to supplement the inadequate public universities, to better meet the needs of the community, to alleviate the pressure on government funding, increase education spending and expanding domestic demand, reduce employment Pressure, and promote social stability and make some contribution, but the sources of school funding and a limited number of single, also affect the survival and development of private universities.Relative to a financial provision of public universities, private colleges consumer to bear the higher education funding, which is increasing the total payment of tuition fees.Additionally,others sources of the private higher education funds include the incomes from scientific research and university, holding enterprises, the social endowments and loans from banks at present, but the percentage of these funds in the overall private higher education funds is very low, and it is difficult for them to be the main sources of the private higher education funds in short term.Professor Li Yi-ning suggested developing the education taking advantage of capital market,but he didn't give it material research.Some scholars have put attention to the problem of the universities'financing through capital market,and put forward to the status quo of the problem and some approaches which universities use to finance through capital market,but they lacked systematic framework and didn't give attention to the corresponding guarantee forth universities'financing through capital market .Firstly, this paper identifies the concept of capital market and the private colleges, and then discusses the use of private capital markets for financing universities the necessity and feasibility. Analysis of current domestic and international status of capital market financing private universities, private universities in China reveals the problems facing the capital market financing, private education raised from abroad the successful experience of capital markets, and finally how to protect the private universities to study the use of capital market financing, according to Our proposal at this stage full capital market conditions, the state, society, the main private universities the power of their own to solve four keys private universities facing financial problems. The author suggested that private colleges should take the initiative to find the market, study the market environment and adjust their own financing strategies; private universities to shape their own competitive advantage, not only proceed from its own conditions, but can make use of all forces in the capital market, and ultimately their own sustainable growth. Thesis research conducted by private universities to develop and implement financing strategies to provide a new way of thinking. On the other hand, lead to capital markets, private universities, adding to the capital market activity. Private Colleges actively exploring financing channels, as a capital market players, rather than passive acceptance of other principal investments, which greatly enhanced the competitiveness of universities. Not only benefit its own development, but also will contribute to the prosperity of our education, has our country made rapid progress of higher education, thereby promoting social and economic construction of the parties. It is conducive to changing the mindset of the people, the establishment of diversified financing channels. Education is a public welfare undertaking, but the public differs from private colleges and universities, can not rely on state financial support, only market-oriented self-financing, so the shortage of funding for education has been plagued by major problems of its development. Private colleges and universities to continue to develop, we must diversify financing, diversification of the financing needs of government, society, education, the original concept of personal transformation, and understand the development of education is a national, social and personal co-responsibility, education, help alleviate the financial pressure to speed up the realization of China's higher education.