CITIC Limited Half-Year Report 2019

127 CITIC Limited Half-Year Report 2019 For the six months ended 30 June 2019 31 Structured entities (continued) (c) Structured entities sponsored by the Group which the Group does not consolidate but holds an interest The investments issued by unconsolidated structured entities sponsored by the Group are primarily wealth management products and trust plans without principal and/or return guarantee. The nature and purpose of these structured entities are for the Group to generate fees from managing assets on behalf of investors. These structured entities are financed through the issuance of products to investors. Interest held by the Group includes fees charged by providing management services and investment made by the Group. Wealth management products and trust plans As at 30 June 2019, the aggregate amount of assets held by the unconsolidated non-principal- guaranteed wealth management products and trust plans which are sponsored by the Group was HK$3,110,831 million (31 December 2018: HK$3,093,454 million). As at 30 June 2019, the amount of placements from the Group with non-principal-guaranteed wealth management products sponsored by the Group was HK$49,451 million (31 December 2018: HK$72,472 million); the amount of placements from banks and non-bank financial institutions was HK$1,296 million (31 December 2018: HK$50,907 million). During the six months ended 30 June 2019, the maximum exposure of the placements from the Group with non-principal guaranteed wealth management products sponsored by the Group was HK$78,461 million (six months ended 30 June 2018: HK$66,196 million). The maximum exposure of placements from banks and non-bank financial institutions was HK$10,673 million (six months ended 30 June 2018: HK$2,974 million). In the opinion of management, the transactions were conducted in the ordinary course of business under normal terms and conditions and at market rates. During the six months ended 30 June 2019, the amount of fee and commission income recognised from the above mentioned structured entities sponsored by the Group was HK$4,224 million (six months ended 30 June 2018: HK$2,803 million); interest income of HK$709 million (six months ended 30 June 2018: HK$1,602 million). The amount of interest expenses was HK$462 million (six months ended 30 June 2018: HK$339 million). Notes to the Consolidated Financial Statements