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CITIC LIMITED
Notes to the Consolidated Financial Statements
For the six months ended 30 June 2016
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17 Derivative financial instruments
(continued)
(b) Credit risk weighted amounts
The credit risk weighted amounts are solely in connection with the derivatives held by CITIC Bank,
and have been computed in accordance with “Regulation Governing Capital of Commercial Banks
(provisional)” promulgated by the China Banking Regulatory Commission in the year of 2012, and
depends on the status of the counterparties and the maturity characteristics of the instruments,
including those customer-driven back-to-back transactions. As at 30 June 2016, the credit risk
weighted amount was HK$38,155 million (31 December 2015: HK$22,332 million), of which HK$17,345
million (31 December 2015: HK$17,066 million) was attributes to default risk of counter party and
HK$20,810 million (31 December 2015: HK$5,266 million) was credit valuation adjustment.
(c) Derivatives designated as hedging instruments
(i) Fair value hedge
Fair value hedge is adopted to hedge the risk that a financial instrument’s fair value will fluctuate
because of changes in market interest rates or foreign exchange rates by using interest rate
swaps or foreign currency forward contracts.
(ii) Cash flow hedge
Cash flow hedge is adopted to hedge the risk that a financial instrument’s cash flows will
fluctuate because of changes in market interest rates, foreign exchange rates or commodity
price by using foreign currency forward contracts, commodity forward contracts or interest rate
swaps.
18 Trade and other receivables
30 June
2016
31 December
2015
HK$ million
HK$ million
Trade and bills receivables (note (a))
28,963
27,333
Interest receivables (note (b))
36,583
36,750
Prepayments, deposits and other receivables (note (c))
69,119
77,264
134,665
141,347
As at 30 June 2016, the amount of the Group’s prepayments, deposits and other receivables expected to be
recovered or recognised as expense after more than one year was HK$16,862 million (31 December 2015:
HK$16,502 million). The remaining trade and other receivables are expected to be recovered or recognised
as expense within one year.