This paper analyzes the risk profile of China's private enterprises,and makes an empirical study of the financial risk of the listed private enterprises.We find that the average financial risk level of China's listed private enterprises is significantly higher than that of the listed state-owned enterprises.From the aspect of the trend,the Z-index representing the financial stability of the listed private enterprises is decreasing from 2000 to 2004,which implies that their financial risk is increasing every year in face of the fierce competition.This paper also gives suggestions on the risk management of China's private enterprises,especially on the prevention of financial risks.