Abstract

<p align="justify">The proportion of income and operating expenses will be out of balance once there is no appropriate financial management on the basic finance of corporate operation. The improving of corporate financial management has become the focus of many companies, especially for modern enterprises of strong competitiveness. However, many Chinese companies still adopt traditional financial management techniques, and their effects of risk management are obviously decreasing. Financial engineering is beneficial to the implementation of company’s new management plans. It is essential and plays a critical role in all aspects of business operations. Improvement and innovation should also be made with effort in the process of application.</p>

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