CITIC Limited Half-Year Report 2019

105 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 (continued) Movements of the loss allowances for investments in financial assets for the period is as follows: 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 3,970 327 1,855 6,152 Movements (note (i)): Net transfers out from stage 1 (3) – – (3) Net transfers into stage 2 – – – – Net transfers into stage 3 – – 106 106 Net increase/(decrease) during the period (note (ii)) 1,710 (157) (21) 1,532 Write offs – – (386) (386) Parameters change for the period (note (iii)) (635) 143 470 (22) Others (note (iv)) (35) (1) (12) (48) Balance at 30 June 2019 5,007 312 2,012 7,331 Notes: (i) Movements mainly includes the impacts to ECL due to changes in stages. (ii) Net increase/(decrease) mainly includes changes in allowance of impairment due to new purchased or originated credit- impaired financial assets or de-recognition excepting for write-off. (iii) Parameters change mainly includes the impacts to ECL due to unwind of discount, regular update on modeling parameters resulting from changes in PD and LGD except for changes in stages. (iv) Others includes recoveries of amounts previously written off, changes in interest accrual and exchange adjustment. Notes to the Consolidated Financial Statements