Study On Financial Risk Prevention Of ChinaListed Security Companies

In recent years, as China’s economy going into the "new normal", the development pattern of the financial industry is undergoing profound changes. Securities industry faces many challenges, such as mixed management. the internet finance, licensing releasing and regulatory transition. At the same time. China actively encourages securities companies to do the business innovation and transformation. which has a great influence on the securities industry.In 2015, the stock market improved markedly and broke through 5000 points, which aroused the enthusiasm of the investors, the turnover reached a new high record. In the first quarter of 2015, affected by the stock market, securities companies earned more profits than last years. Howerver, it should not be ignored that under the veil of good performance, securities companies face high risk than ever. Effectively guard against financial risks is the foundation for the firm and stable development of the securities companies.Firstly, the paper elaborated the background and significance, literature review, shortage and innovation of the paper, and the basic content and framework of the paper. Secondly, the paper analyses the meaning of the financial risk which the securities firms face, introduces the common analysis methods of financial risk and analyses the reasons and symptoms of the financial risk of the securities companies in recent years. Thirdly, the paper evaluates the financial risk of the China Merchants Securities, based on historical financial data, combining with the knowledge of the financial management theory, economics theory, management theory and corporate finance governance theory. The paper builds a suitable financial risk evaluation system by selecting the appropriate financial indicators and uses auxiliary multivariable model to analyze the financial risk of the China merchants securities. Finally, we reach the conclusion and put forward some financial risk prevention recommendations, including:to strengthen the employee risk awareness, to improve the company’s risk management system, to perfect the internal control system, to pay attention to the information system construction, to broaden the financing channels, to make more efforts to develop innovation business, to put emphasis on the prevention of innovative business’s risk.