CITIC Limited Half-Year Report 2019

103 CITIC Limited Half-Year Report 2019 For the six months ended 30 June 2019 29 Financial risk management and fair values (continued) (a) Credit risk (continued) (ii) Expected credit losses The following table explains the changes in the gross carrying amount for loans and advances to customers and other parties for the six months ended 30 June 2019: Six months ended 30 June 2019 Stage 1 Stage 2 Stage 3 Total HK$ million HK$ million HK$ million HK$ million Balance at 1 January 2019 3,959,696 109,399 75,163 4,144,258 Movements: Net transfers out from stage 1 (56,999) – – (56,999) Net transfers into stage 2 – 13,862 – 13,862 Net transfers into stage 3 – – 43,137 43,137 Net increase/(decrease) during the period (note (i)) 312,273 (10,702) (7,007) 294,564 Write offs – – (32,039) (32,039) Others (note (ii)) (18,915) (419) 2,034 (17,300) Balance at 30 June 2019 4,196,055 112,140 81,288 4,389,483 The following table explains the changes in the gross carrying amount for investments in financial assets for the six months ended 30 June 2019: Six months ended 30 June 2019 Stage 1 Stage 2 Stage 3 Total HK$ million HK$ million HK$ million HK$ million Balance at 1 January 2019 1,478,556 5,559 3,099 1,487,214 Movements: Net transfers out from stage 1 (174) – – (174) Net transfers into stage 2 – – – – Net transfers into stage 3 – – 174 174 Net increase/(decrease) during the period (note (i)) 222,988 (4,278) (192) 218,518 Write offs – – (216) (216) Others (note (ii)) (9,937) 74 (38) (9,901) Balance at 30 June 2019 1,691,433 1,355 2,827 1,695,615 Notes to the Consolidated Financial Statements