Studies On Financing In Henan University Of Science And Technology

With the rapid development of higher education, China has being witnessed thefast-growing universities especially in terms of the size. In the past decade, there is anincreasing demand for education funds in colleges and universities. Education Law ofthe People’s Republic of China stipulates that the colleges and universities should bemainly funded by the government finance department and be supplemented by avariety of other sources. Therefore, the multiple financing has been adopted in thehigher education system. Due to the unique properties including non-profitability, theuniversities have been subject to many limitations for financing modes so that thegovernment financing occupies a predominant position. The economy status of theplace where the universities located and the governmental support of have determinedto a larger degree on how much funds can be allocated. As the financial strategies ofsustainable development, the channels should be widened and introduce more fundsbased on their own resources.This paper has discussed how HKD University situated in a province of middleChina raise the funds for education.Starting from the basic theories on highereducation financing, it has analyzed its current situation and characteristics, hasespecially specified the advantages and disadvantages of financing, opportunities andchallenges by means of SWOT analysis, mainly including its academic strengths andfavorable geographic location, social reputation and the cash-ability of its idle assets.The disadvantages of negative impact of financial appropriation on universities, a hugeamount of bank loan with interest and the bad cash-ability of its idle assets have alsobeen studied. The paper has especially specified the opportunities brought by state-policy of giving high priority to developing education as well as idle land appreciation,and challenges brought by money squeeze and the policy of realization of fixed assets.Based on the analysis above, the paper has proposed the funding sources of HKDuniversity mainly including how to use the idle assets rationally, how to develop the university-run Industries, how to expand research revenue and Chinese-foreigncooperation in running universities so as to increase the income.To maintain anappropriate level of debt, the proposals for fully tapping alumni resources, increasingdonation and strengthening cooperation with other financial institutions have beenpresented in the paper.With the literature and the actual situation of HKD University in this paper, Ihave presented qualitative analysis supported by economics, management science,pedagogy and other related disciplines. The combination of theories and practice haslead the research results to be more operational.