Zhu Haiyan (Xinjiang Tianshan Wool Textile Co., Ltd., Urumqi, Xinjiang 830000) Abstract: Against the dual backdrop of economic globalization and domestic industrial restructuring, state-owned enterprises (SOEs) increasingly pursue growth through mergers and acquisitions (M&A). This strategy serves not only as a key pathway for SOEs to expand scale and broaden business domains, but also as a vital means to optimize resource allocation and enhance market competitiveness, thereby accelerating strategic transformation. However, M&A activities often carry financial risks, and the ability to properly manage and effectively address these risks directly determines the success or failure of such transactions. This paper elucidates the necessity of M&A restructuring for state-owned enterprises under new circumstances, grounded in the concept of SOE M&A and the types of financial risks involved. By systematically analyzing financial risks across pre-, during, and post-M&A phases, it proposes corresponding countermeasures to address financial risks in M&A activities. The aim is to assist state-owned enterprises in effectively preventing financial risks associated with M&A and achieving the anticipated objectives of such activities. Keywords: State-owned enterprises; Mergers and acquisitions; Financial risks; Integration of business and finance