In view of the sharp contradichon between the raPidly developing higher education inChina and the ldriited govement financial allocation, a new path for the development ofhigher education is proPOsed, which is based on the mechedsm of the market economy and issuPported by the goverment funding. Also proposed is the concept of efficient use of tliecaPital oPeration to rm schools of higher ledring or even the Whole higher education realinas wtng an enerprise. These proPOsals are aimed at the followtng pmpses: to improve theeconondc operation quality of the higher education; to make fu1l use of the caPital oPerationin conStrUcting the financial support fOr higher education; to bring abOut the whfication of theoptimiZation of the development of higher education and the oZation of the econondcoperation; and to make higher education serve the society most.Major value concepts in the economic operation of higher education are thoroughlyanalyzed, and major key POints in the economic operation of higher education explored.General rules of capital oPeration are combined with the actual practice of higher education,and a speciai mode of caPital oPeration which suits the featUrs of higher education areproPOsed. On thes basis, thOrough research words are done on the operaion methods of themode as a Whole and of the different key POints, and a series of creative concePtS andconception of act-Ual practices are proposed.New conceptS are created in a series of major oPeration methods in the modes of caPitaloperation of higher education. These include: imProvement of govemmen funding system forhigher education wth the investment and production mechAnsm and the fOUndation Systcm;vitaliZation of the built-uP assets in higher education with asset securihZation and prachce ofdirect driding; establishInent of private higher education system by refondng the Publicschools of higher ledring; realization of the scale economy and the scope economy of highereducation with the help of the intra-system and cross-system tw and analogical resmicturillg;and refondng of the fee-collecting system in higher education in line wtth the Anl-coStcomPensation principle.