CITIC Limited Half-Year Report 2020

102 CITIC Limited Half-Year Report 2020 For the six months ended 30 June 2020 Notes to the Consolidated Financial Statements 29 Financial risk management and fair values (continued) (a) Credit risk (continued) (ii) Expected credit losses (continued) The following table explains the changes in the gross carrying amount for investments in financial assets for the period: Six months ended 30 June 2020 Stage 1 Stage 2 Stage 3 Total HK$ million HK$ million HK$ million HK$ million Balance at 1 January 2020 1,727,835 12,932 10,836 1,751,603 Movements: Net transfers out from stage 1 (1,998) – – (1,998) Net transfers out from stage 2 – (8,845) – (8,845) Net transfers into stage 3 – – 10,843 10,843 Net increase/(decrease) during the period (note (i)) 146,252 (113) (278) 145,861 Write offs – – – – Others (note (ii)) (29,092) (146) (303) (29,541) Balance at 30 June 2020 1,842,997 3,828 21,098 1,867,923 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: (i) Net increase/(decrease) mainly includes changes in carrying amount due to new purchased or originated credit-impaired financial assets or de-recognition other than write-off. (ii) Others includes changes in interest accrual and exchange adjustment.