The Research On Financial Risks Of Wind Power Industry In China

Wind power as one of important new energy in our country, its industry financial riskswould affect the implementation of China’s renewable energy strategy and the overallsituation of economic transformation and upgrading. In addition, most of operating capital ofwind power enterprises is from bank loans or equity investment fund. And there are manyinvestors have wind power listed company’s shares in the secondary market. If plenty of windpower enterprise go bankrupt, it will make a large number of bad loans to the bank, and willmake many investors suffered huge losses, ultimately affect the stability of the financialsystem in our country. Therefore, in this paper, there is great significance to system researchthe financial risks of wind power industry in our country.This article firstly elaborate the general situation of wind power industry, and analyze therisk situation and the cause of wind power machine manufacturing, wind power developers,wind power service industry. Then, we make12domestic leading wind power enterprisesbehalf on wind power industry, collect a total of27,048financial statements data since thefirst quarter of2007to the third quarter of2012, build the industry’s balance sheet. Wequantitative analysis of wind power industry static financial risks form capital structuremismatch risk, term mismatch risk, the operation ability risk and profitability risk. Then, weuse a total of17,256stock trading data for these12domestic leading wind power enterprises,under the contingent claim method, through MATLAB software calculating the value ofindustry total assets and its volatility, to build contingent claim balance sheet. On this basis,we empirical research the dynamic financial risks of wind power industry through defaultprobability, default distance and credit risk premiums. Finally, we use content analysis method,quantitative research the40wind power supporting policies of32policy text range, and putforward policy recommendations.Through the empirical analysis of the wind power industry in this paper, we concludethat industry’s asset-liability ratio is too high, the duration of asset and liability is mismatch.And the wind power industry decelerated growth and Profitability decline, had entered thephase of adjustment and the meager profit era, since the fourth quarter of2010. The credit riskof wind power industry continued to deteriorate, the probability of default and the risk premium had risen, default distance was more and more low, since the third quarter of2011.The problem of current wind power support policy is using too many mandatory policies, lackof considering uniformity and continuity.Therefore, this article suggest to establish stable funds and improve the risk managementmechanism to manage the current financial risks of wind power industry, and throughimproving the wind power industry support policy to promote the wind power industryhealthy development to prevent financial risks.