CITIC Limited Half-Year Report 2020

125 CITIC Limited Half-Year Report 2020 For the six months ended 30 June 2020 Notes to the Consolidated Financial Statements 31 Structured entities (continued) (d) Transfers of financial assets The Group entered into transactions which involved transfers of financial assets including securitisation transactions, structured transfers on assets usufruct, transfers of loans including non-performing loans, and financial assets sold under repurchase agreements. These transactions were entered into in the normal course of business by which recognised financial assets were transferred to third parties or structured entities. Transfers of assets may give rise to full or partial derecognition of the financial assets concerned. On the other hand, where transferred assets do not qualify for derecognition as the Group has retained substantially all the risks and rewards of these assets, the Group continues to recognise the transferred assets. Details of securitisation transactions, structured transfers on assets usufruct and loan transfer transactions conducted by the Group for the six months ended 30 June 2020 totalled RMB26,043 million (six months ended 30 June 2019: RMB39,733 million) are set forth below. Securitisation transactions and structured transfers on assets usufruct During the six months ended 30 June 2020, the Group, through securitisation and by restructuring the rights to receive cash flows, transferred financial assets at the original cost of RMB22,701 million (six months ended 30 June 2019: RMB34,658 million). The Group carried out assessment and concluded that these transferred assets qualified for full de-recognition (six months ended 30 June 2019: other assets and other liabilities of HK$2,153 million arising from such continuing involvement). Loan transfers During the six months ended 30 June 2020, the Group also transferred loans of book value before impairment of RMB3,342 million through other types of transactions (six months ended 30 June 2019: RMB5,075 million). RMB1,395 million of this balance (six months ended 30 June 2019: RMB5,075 million) was non-performing loans. The Group carried out assessment based on the transfer of risks and rewards of ownership and concluded that these transferred assets qualified for full derecognition.