The Financing Strategies And Risk Control For New Campus Construction Of Higher Vocational Colleges

Since the late 1990 s, higher education in China has transformed from elite education to public education, witnessing a growing number of enrollment year by year. For greater performance, many higher education institutions would rather borrow money to construct new campuses. After the nationwide construction boom of “university town”, “college town” led another trend. During the construction, each school had met financial pressure to some extent. How to use existing resources to resolve capital shortage becomes the urgent issue facing all vocational colleges, which also constitutes the internal impetus and key step towards sustainable development.Based on a case study of GMEP, this paper analyzes its financial dilemma in the process of new campus construction by employing knowledge and theories of economy, financial management and finance, involving government, bank and school.SWOT and data analysis methods are adopted to explore the financing problems and effective financing channels. This paper advises that a risk supervision and control mechanism of capital using be established, in order to avoid and resolve a vicious cycle of debt and heavier debt burden which may harm development and cause huge amount of non-performing assets of the bank. It is necessary to raise the capital usage efficiency, exemplifying new campus construction for other colleges.