Study On System Of Financial Risk Management In Transtional Merge Andacquisition Of Chinese Enterprises

China’s entered into the WTO for ten years. In these years, more and more enterprises hadjoined into the ranks of transnational mergers and acquisitions in China along with the globalsuccession of m&a wave. This is the sign of the development of economic in China, and it is theimportant way to further development for enterprises. However transnational m&a is full of risksfrom beginning to end, and the financial risks play a important role among those. How to breakthrough the bottleneck of the condition of high incidence of transnational m&a and low success rate?Controlling the financial risk is the key.There are three stages during transnational m&a：preparation、implementation and mergerintegration.In this paper the process of transnational m&a is considered as clues. The authorpointed out that in the stage of preparation there are strategic decision risk and the risk ofassessment. Then the author put forward that the decision should been based on the assessment ofthe value of their own enterprises and the target enterprises. At the same time the quantitativeanalysis of the target enterprise value is accessed based on the quantification-analysis. Theimplementation stage faces the payment risk, the risk of exchange rate and the financing risk. So itneeds reasonable financing analysis, to choose a variety of financing channels and to choose theright means of payment according to the enterprise. At last it needs to strengthen the financialintegration,. The paper has analysed systematically the financial risks and appropriate managementmeasures in the three stages. Also the specific measures of the financial risks managemengt aregiven after analyzing the case of Sinosteel’ takeover of Midwest. As a result, it provided theorybasis for enterprise’s practice of transnational m&a.