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CITIC LIMITED
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)
(d) Currency risk
(continued)
The exposure to currency risk arising from the financial assets and financial liabilities at the balance
sheet date is as follows (expressed in HK$ million):
As at 30 June 2016
HK$
US$
RMB
Others
Total
Total financial assets
161,882
353,893
6,089,739
45,918
6,651,432
Total financial liabilities
(163,390)
(452,303)
(5,783,410)
(60,882)
(6,459,985)
Financial asset-liability gap
(1,508)
(98,410)
306,329
(14,964)
191,447
As at 31 December 2015
HK$
US$
RMB
Others
Total
Total financial assets
142,259
358,265
5,729,973
43,324
6,273,821
Total financial liabilities
(137,807)
(437,680)
(5,403,623)
(67,486)
(6,046,596)
Financial asset-liability gap
4,452
(79,415)
326,350
(24,162)
227,225
The Group uses sensitivity analysis to measure the potential effect of changes in foreign currency
exchange rates on the Group’s profit or loss.
Assuming all other risk variables remained constant, a 100 basis points strengthening or weakening
of HK$ against the US$, RMB and other currencies as at 30 June 2016 would decrease or increase
the Group’s annualised profit before taxation by HK$1,930 million (31 December 2015: decrease or
increase the Group’s annual profit before taxation by HK$2,228 million).
This sensitivity analysis is based on a static foreign exchange exposure profile of financial assets
and financial liabilities and certain simplified assumptions. The analysis is based on the following
assumptions: (1) the foreign exchange sensitivity is the gain and loss recognised as a result of 100
basis points fluctuation in the foreign currency exchange rates against HK$; and (2) the exchange
rates against HK$ for all foreign currencies changes in the same direction simultaneously and does not
take into account the correlation effect of changes in different foreign currencies; and (3) the foreign
exchange exposures calculated include both spot foreign exchange exposures, forward foreign
exchange exposures and options, and all positions will be retained and rolled over upon maturity. The
analysis does not take into account the effect of risk management measures taken by management.
Because of its hypothetical nature with the assumptions adopted, actual changes in the Group’s profit
before taxation resulting from increases or decreases in foreign exchange rates may differ from the
results of this sensitivity analysis.