Financial Report 2021

Notes to the Consolidated Financial Statements 合併財務報表附註 The University of Hong Kong 香港大學 101 (i) Financial risk factors The Group’s activities expose it to a variety of f i nanc i a l r i sks : ma r ke t r i sk ( i nc l ud i ng f o r e i gn exchange risk, price risk and interest rate risk), credit risk and liquidity risk. The Group’s overall r i sk managemen t f ocuses on con t r o l l i ng t he impact arising from unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. The Finance Committee assumes the risk management r espons i b i l i t y and mon i t or s r egu l a r l y t he r i sk exposures of the Group. (1) Market risk Market risk represents the risk that the value of financial assets will decrease as a result of movements in market variables such as foreign exchange rates, stock prices and interest rates. The Group is exposed to market risk mainly through the investment funds it holds. The Group’s investments comprise of equities, debt securities, alternative investments and time deposits. The investment principle of the Group is to invest prudently in order to preserve capital and achieve optimal risk diversification while generating the required return and liquidity. The Group employs reputable third party investment manage r s t o manage a p r opo r t i on o f i t s investments, through unit trusts and segregated investment portfolios, and delegates the Finance and Enterprises Office of the University to manage structured and time deposits and debt investments carried at amortised cost. (i) 財務風險因素 本機構的活動承受著多種的財務風險： 市場風險（包括外匯風險、價格風險和 利率風險）、信貸風險及流動資金風 險。本機構的整體風險管理專注於控制 因財務市場難以預測的影響，並尋求儘 量減低對本機構財務表現的潛在不利影 響。財務委員會負責本機構風險管理及 定期監察的風險設定。 (1) 市場風險 市場風險是因滙率、股票價格及利 率等市場變數出現變動而引致財 務資產出現虧損的風險。本機構承 受的市場風險主要來自其持有的投 資基金。本機構的投資包括股本證 券、債券、另類投資及定期存款。 本機構的投資原則是以審慎的投資 保障本金及實現適當分散風險，同 時取得所需的回報及流動資金。本 機構從外委聘具規範的投資經理透 過單位信託基金及獨立投資組合管 理部分投資，也授權財務及企業管 理處管理結構性存款、定期存款及 以攤銷成本列賬之債務投資。 37. FINANCIAL RISK MANAGEMENT 財務風險管理 Notes to the Consolidated Financial Statements 合併財務報表附註 2021 Financial Report 二零二一財務報告 102 (i) Financial risk factors – Cont’d (1) Market risk – Cont’d The Finance Committee appoints an Investments Sub-Committee to oversee and advise on the Group’s investment strategy and to monitor the performance of the investment managers. The Investments Sub-Committee sets specific exposur e l imi t s to d i f f e r en t asse t c l asses and monitors the actual exposures regularly according to the latest market conditions. The Investments Sub-Committee also formulates investment guidelines and restrictions on areas such as stock markets, foreign currencies and credit standing of issuers of debt securities for the investment managers to comply with. The investment guidelines and restrictions specify exposure limits to different asset types, instruments, foreign currencies and stock markets and prohibits investments that carry unacceptable level of risk. Compliance with the investment guidelines and restrictions are monitored on a regular basis by the custodians and the Finance and Enterprises Office of the University. Foreign exchange risk The Group operates mainly in Hong Kong. Other than financial investments denominated in foreign currencies in the investment funds, the Group has limited exposure to foreign exchange risk which arises from foreign currency purchases and receipts/payment for activities jointly organised with overseas institutions. For financial investments denominated in foreign currencies, a significant portion is denominated in United States dollars to which the Hong Kong dollar is pegged. When seeking to optimise the return on its funds available for investment, the Group may invest in non-Hong Kong dollar securities from time to time under the limit prescribed by the Investments Sub-Committee. (i) 財務風險因素－續 (1) 市場風險－續 財務委員會委任投資附設委員會負 責監督及建議本機構的投資策略和 監察投資經理的表現。投資附設委 員會對各種投資類別訂下明確的投 放額度，並定期就最新的市場環境 監察實際的投放情況。投資附設委 員會也制訂給各投資經理遵守的投 資指引及限制範圍，如股票市場、 外幣及發債者的信貸情況。投資指 引及限制明確訂出各種投資類別、 工具、外幣及股票市場的投放額 度，同時禁止從事風險達到不能接 受水平的投資。大學的財務及企業 管理處和保管銀行負責定期檢視投 資指引及限制是否被徹實遵行。 外匯風險 本機構的主要營運地點為香港。故 此除來自投資基金中以外幣作結 算的金融投資外，本機構對用外幣 購物及來自與海外機構聯合舉辦活 動的收╱付款只承受有限之外匯風 險。而以外幣作結算的金融投資大 部份都是投放在與港元掛鈎的美元 當中。為求於可供投資的資金中獲 得最大之回報，本機構亦會根據投 資附設委員會制訂的額度投資非港 元證券。 37. FINANCIAL RISK MANAGEMENT – Cont’d 財務風險管理－續