CITIC Limited Half-Year Report 2020

113 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) (d) Currency risk (continued) The exposure to currency risk arising from the financial assets and financial liabilities at the balance sheet dates is as follows (expressed in HK$ million): As at 30 June 2020 HK$ US$ RMB Others Total Total financial assets 174,298 404,887 7,248,567 40,879 7,868,631 Total financial liabilities (242,769) (411,941) (6,780,292) (38,445) (7,473,447) Financial asset-liability gap (68,471) (7,054) 468,275 2,434 395,184 As at 31 December 2019 HK$ US$ RMB Others Total Total financial assets 183,551 356,266 7,073,604 55,783 7,669,204 Total financial liabilities (321,638) (348,602) (6,554,096) (40,124) (7,264,460) Financial asset-liability gap (138,087) 7,664 519,508 15,659 404,744 The Group uses sensitivity analysis to measure the potential effect of changes in foreign currency exchange rates on the Group’s comprehensive income. Assuming all other risk variables remained constant, a 100 basis points strengthening or weakening of HK$ against US$, RMB and other currencies as at 30 June 2020 would decrease or increase the Group’s total comprehensive income by HK$4,637 million (31 December 2019: decrease or increase by HK$5,428 million). This sensitivity analysis is based on a static foreign exchange exposure profile of financial assets and financial liabilities and certain simplified assumptions. The analysis is based on the following assumptions: (1) the foreign exchange sensitivity is the comprehensive income changes recognised as a result of 100 basis points fluctuation in the foreign currency exchange rates against HK$; (2) the exchange rates against HK$ for all foreign currencies change in the same direction simultaneously and do not take into account the correlation effect of changes in different foreign currencies; and (3) the foreign exchange exposures calculated include both spot foreign exchange exposures, forward foreign exchange exposures and options, and all positions will be retained and rolled over upon maturity. The analysis does not take into account the effect of risk management measures taken by management. Because of its hypothetical nature with the assumptions adopted, actual changes in the Group’s comprehensive income resulting from increases or decreases in foreign exchange rates may differ from the results of this sensitivity analysis.