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HALF-YEAR REPORT 2016
Notes to the Consolidated Financial Statements
For the six months ended 30 June 2016
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32 Financial risk management and fair values
(continued)
(b) Liquidity risk
Liquidity risk arises when there is mismatch between amounts and maturity dates of financial assets
and financial liabilities.
Each of the Group’s operating entity formulates liquidity risk management policies and procedures
within the Group’s overall liquidity risk management framework and takes into consideration of the
business and regulatory requirements applicable to individual entity.
The Group manages liquidity risk by holding liquid assets (including deposits, other short term funds
and securities) of appropriate quality and quantity to ensure that short term funding requirements
are covered within prudent limits. Adequate standby facilities are maintained to provide strategic
liquidity to meet unexpected and material demand for payments in the ordinary course of business.
The following tables indicate the analysis by remaining maturities of the Group’s financial assets and
liabilities:
As at 30 June 2016
Repayable
on demand Within 1 year
Between 1
and 5 years
More than
5 years
No maturity
date
Total
HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million
Total financial assets
361,108
3,339,727
1,494,827
852,024
603,746
6,651,432
Total financial liabilities
(2,529,900)
(3,217,078)
(553,477)
(157,403)
(2,127)
(6,459,985)
Financial asset-liability gap
(2,168,792)
122,649
941,350
694,621
601,619
191,447
As at 31 December 2015
Repayable
on demand Within 1 year
Between 1
and 5 years
More than
5 years
No maturity
date
Total
HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million
Total financial assets
313,863
3,302,808
1,384,146
702,505
570,499
6,273,821
Total financial liabilities
(1,981,905)
(3,242,186)
(623,643)
(197,096)
(1,766)
(6,046,596)
Financial asset-liability gap
(1,668,042)
60,622
760,503
505,409
568,733
227,225