CITIC Limited Half-Year Report 2019

94 CITIC Limited Half-Year Report 2019 For the six months ended 30 June 2019 28 Contingent liabilities and commitments (continued) (b) Credit commitments analysed by credit risk weighted amount 30 June 2019 31 December 2018 HK$ million HK$ million Credit risk weighted amount on credit commitments 472,826 422,882 Notes: (i) The above credit risk weighted amount is solely in connection with the credit commitments held by CITIC Bank under the financial services segment of the Group. (ii) The credit risk weighted amount refers to the amount as computed in accordance with the rules set out by the China Banking and Insurance Regulatory Commission and depends on the status of counterparties and the maturity characteristics. The risk weighting used is ranging from 0% to 150%. (c) Redemption commitment for treasury bonds As an underwriting agent of PRC treasury bonds, CITIC Bank has the responsibility to buy back those bonds sold by it, should the holders decide to early redeem the bonds held. The redemption price for the bonds at any time before their maturity dates is based on the nominal value plus any interest unpaid and accrued up to the redemption date. Accrued interest payables to the treasury bond holders are calculated in accordance with relevant rules of the Ministry of Finance and the People’s Bank of China. The redemption price may be different from the fair value of similar instruments traded at the redemption date. The redemption obligations below represent the nominal value of treasury bonds underwritten and sold by CITIC Bank, but not yet matured at the balance sheet date: 30 June 2019 31 December 2018 HK$ million HK$ million Redemption commitment for treasury bonds 13,448 12,669 As at 30 June 2019, the original maturities of these bonds vary from one to five years (31 December 2018: one to five years). Management of the Group expects the amount of redemption before maturity dates of these bonds will not be material. The Ministry of Finance will not provide funding for the early redemption of these bonds on a back-to-back basis, but will settle the principal and interest upon maturity. Notes to the Consolidated Financial Statements