A Study On Financial Risk Control Of The East Money Merging TongXin Securities

The vigorous development of the Internet enriches the way of information interaction,and it promotes industrial interconnection and the transformation and upgrading of traditional industries.The link between the Internet and the traditional industry is increasingly close,and the phenomenon of cross-border mergers and acquisitions of Internet companies are increasing.Based on long-term development,merger and acquisition has become the best way for the expansion of Internet enterprises.Although M&A can bring high benefit to the M&A party,there are also facing the risk of policies and regulations,financial risk,market environment risk and so on.The M&A party needs to establish a perfect financial risk management system for M & A to control it,thereby,greatly improve the success rate of M&A.East Money Information Co.Ltd.(hereinafter referred to as " East Money "),as a representative Internet company in China,focuses on providing financial information for customers.Within the strong support from the government policy,the rapid popularization of Internet,the continuous warming of domestic capital market,and the active macroeconomic background,East Money has grasped the opportunity to achieve the merger and acquisition of Tongxin Securities.Based on the introduction of Chinese Internet enterprises mergers and acquisitions,within the related concepts and theories financial risk,the thesis detailedly analyze the risk control measure during the process of the mergers and acquisitions of East Money Securities,East Money achieved effective control with the financial risk of pre-merger and acquisitions,and during the mergers and acquisitions through the financial risk control measures,and successfully completed the mergers and acquisitions,expanded the business scale,created synergies,and achieved the transformation of the Internet brokerage industry.Lastly,according to the case study,from point to surface draw the revelation and conclusion of this paper,and put forward the prospect of the whole Internet industry.