Study on Financial Risk Pre-Warning of Combined Heat and Power Corporate

CHP (combined heat and power) corporates not only can economize energy source, but also can integrate the benefits of increasing the quality of heating supply. So CHP developed rapidly after reformation in China, especially after promulgating the Law of the People's Republic of China on conserving energy. However analysis and pre-warning about the financial risks of CHP is not found in present literature. This paper first established an financial risk index system after analyzing the characteristics of CHP corporates' financial risks. Then this paper gave an financial risk pre-warning model which was established based on set pair analysis (SPA) theory. At last, the paper gave an empirical study in order to verify the financial risk pre-warning model's feasibility in CHP corporates.