This dissertation addresses a critical scientific problem concerning the optimisation of state financial resource management within the higher education system in China. In the context of growing global competition and the increasing significance of innovative development, higher education plays a decisive role in building human capital, fostering social mobility, and achieving strategic national objectives. However, significant regional disparities in higher education funding in China create substantial barriers to ensuring equitable access and the quality of educational services. This research focuses on the development of theoretical foundations and practical recommendations to improve financial management in this sector. Higher education is a key element of national development, as it creates a highly skilled workforce for the economy, stimulates innovation, and promotes social integration. In China, currently at the stage of higher education universalisation, the issues of regional equity, efficiency, and adequacy of funding are particularly pressing. The eastern regions of the country receive significantly more resources than the central, western, and north-eastern regions, creating inequalities in development opportunities. The allocation of financial resources in China has a substantial impact on the socio-economic stability and international competitiveness of the country. The aim of the study is to improve the theoretical and methodological foundations of managing state financial resources in China’s higher education system, considering the principles of regional equity, efficiency, and adequacy of funding. The objectives of the study are as follows: to summarise the theoretical foundations of financial resource management in higher education; to analyse regional disparities in higher education funding in China; to evaluate the efficiency of financial resource distribution using econometric models; to develop a model for assessing funding adequacy across different regions; and to propose practical recommendations for improving mechanisms of financial resource management. The research is based on the application of combined methods: a literature review of international experience and contemporary scientific approaches to financial management in higher education; empirical studies utilising methods such as the Gini coefficient to assess regional inequalities; σ- and β-convergence models to determine trends in regional funding convergence; Data Envelopment Analysis (DEA) to evaluate the efficiency of financial resource utilisation; and funding adequacy modelling to assess the alignment of expenditures with educational needs. The study begins with an analysis of the theoretical foundations of managing state financial resources in higher education, encompassing the key concepts of regional equity, efficiency of resource distribution, and adequacy of funding. A significant aspect of this analysis involves distinguishing between the notions of “equity” as social justice, “efficiency” as the optimal use of resources, and “adequacy” as the alignment of funding with educational requirements.. The study also includes an analysis of international practices in higher education financial resource allocation, focusing on examples from the United States, the European Union, and Japan. The use of “financial adequacy” approaches and mechanisms to support less developed regions in these countries has informed recommendations for China. Particularly useful is the experience of developing multi-channel funding systems that integrate government, private, and international sources. Based on the research findings, recommendations have been developed to improve financial resource management. It is essential to increase transfer payments to less developed regions to ensure they receive the necessary funding levels. A resource allocation model has been designed to account for regional needs and the actual economic capacities of these regions, enabling the optimisation of resource use. Additionally, the dissertation proposes the establishment of a national platform for evaluating the efficiency of financial resource use, which will help to identify problem areas and facilitate well-informed management decisions. To reduce the burden on the state budget, the study suggests creating a multi-channel funding model that involves attracting private capital and international investments, as well as fostering partnerships between universities and businesses. To enhance transparency in management and optimise resource distribution, it is recommended to employ digital technologies and implement automated financial management platforms. The findings can be used to refine state policies in higher education funding and to create integrated resource management systems that consider regional characteristics.
