CITIC Limited Half-Year Report 2020

103 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) Movements of the loss allowances for loans and advances to customers and other parties for the period is as follows: 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 44,014 30,234 60,274 134,522 Movements (note (i)): Net transfers out from stage 1 (3,058) – – (3,058) Net transfers into stage 2 – 5,682 – 5,682 Net transfers into stage 3 – – 35,608 35,608 Net increase/(decrease) during the period (note (ii)) 3,956 (1,863) (3,350) (1,257) Write offs – – (25,985) (25,985) Parameters change for the period (note (iii)) 1,505 7,635 (3,366) 5,774 Others (note (iv)) 687 (661) 3,121 3,147 Balance at 30 June 2020 47,104 41,027 66,302 154,433 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 40,325 26,464 53,219 120,008 Movements (note (i)): Net transfers out from stage 1 (4,650) – – (4,650) Net transfers into stage 2 – 1,362 – 1,362 Net transfers into stage 3 – – 31,462 31,462 Net increase/(decrease) during the period (note (ii)) 4,600 (2,769) (4,019) (2,188) Write offs – – (32,039) (32,039) Parameters change for the period (note (iii)) 3,829 2,464 6,671 12,964 Others (note (iv)) (225) (110) 2,373 2,038 Balance at 30 June 2019 43,879 27,411 57,667 128,957