Abstract:Based on the objective situation of research funds management and the subjective perception of researchers in China, this paper discusses five prominent problems arising from the current research funds management which include unscientific budgeting, disconnected management of project and funds, poor supervision of the use of funds, absent compensation mechanism of human capital, and flawed performance appraisal system. Certain in-depth analysis on the management system, operation mechanism and personnel allocation, etc. are given for the causes of these problems, and some countermeasures are also put forward, to provide some reference for strengthening and improving the research funds management in the scientific research institutions in China.