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 103 (i) Financial risk factors – Cont’d (1) Market risk – Cont’d Foreign exchange risk – Cont’d At 30 June 2021, the percentage of financial investments denominated in currencies other than Hong Kong Dollar and US Dollar to total financial investments of the Group is 9% (2020: 8%). The Group’s financial investments include F i nanc i a l I nves tmen t s a t Amor t i sed Cos t , Financial Assets at Fair Value through Profit or Loss, Bank Deposits and Cash and Cash Equivalents and the details of the exposure are as follows: 2021 2020 Euro 歐羅 3% 2% Sterling 英鎊 1% 1% Japanese Yen 日圓 1% 1% Renminbi 人民幣 2% 2% Others 其他 2% 2% Total 總額 9% 8% The Group does not have material financial liabilities denominated in foreign currency and considers the related foreign exchange risk immaterial. Price risk Price risk represents the risk that the value of investment assets will decrease as a result of falling market prices. The Group is exposed to equity and fund price risk. Equity and fund price risk is managed by diversification of investments through asset allocation limits for different markets, sectors and individual stocks. A small portion of equities are authorised to be invested in emerging markets as prescribed in the specific lists of approved developed markets and emerging markets set by the Investments Sub-Committee. The exposures to key markets are represented by the exposures to local and foreign currencies listed above. Short selling in equity securities is not allowed. (i) 財務風險因素－續 (1) 市場風險－續 外匯風險－續 於二零二一年六月三十日，本機構 以港元或美元以外的外幣作結算 之金融投資佔總金融投資百分之九 （二零二零年為百分之八）。本機構 之金融投資包括以攤銷成本列賬的 財務投資、按公平值計入損益賬的 財務資產、銀行存款及現金及等同 現金，其外匯風險詳情表列如下： 本機構無重大外幣財務負債，並認 為有關的外匯風險微不足道。 價格風險 價格風險是因市場價格出現變動而 引致財務資產出現虧損的風險。本 機構承受股本證券及基金的價格風 險以透過資產分配限制不同市場， 不同組合及個別股票設定作分散投 資的方法來管理此風險及基金，在 投資附設委員會已界定的成熟市場 和新興市場名單當中，新興市場的 資產分配額度只佔很少部分。投放 到主要市場的情況可參考上列的港 元及外幣計值表。本機構並不沽空 股本證券。 37. FINANCIAL RISK MANAGEMENT – Cont’d 財務風險管理－續 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 104 (i) Financial risk factors – Cont’d (1) Market risk – Cont’d Price risk – Cont’d At 30 June 2021, if the prices of the respective equity and fund investments had been 10% higher/lower, with all other variables held constant, the Group’s surplus for the year would have increased/decreased by approximately HK$1,227.5 million (2020: HK$905.9 million). The Group is not exposed to commodity price risk. Interest rate risk Interest rate risk is the risk that the value and future cash flows of interest bearing instruments will decrease as a result of change in interest rate. The Group invests in a substantial amount of fixed rate debt securities and bank deposits. The Group’s interest income and operating cash flows vary with changes in market interest rates. The Group’s interest rate risk arises primarily from debt securities and bank deposits. Bank deposits expose the Group to cash flow interest rate risk. Interest income will decrease as a result of a decrease in deposit interest rates. Fixed rate debt securities expose the Group to fair value interest rate risk. Value of fixed rate debt securities will drop when market interest rates increase. The Group manages its cash flow interest rate risk and fair value interest rate risk by maintaining an appropriate mix of fixed rate debt securities and bank deposits. At 30 June 2021, it is estimated that a general increase/decrease of 25 basis points in bank deposit interest rate, with all other variables held constant, would have increased/decreased the Group’s surplus for the year by approximately HK$18.0 million (2020: HK$18.6 million). This analysis has been determined assuming that the change in interest rates had occurred at the end of each reporting period and had been applied to the bank deposits in existence at that date, with an assumption that fixed term instruments which expire during the next reporting period will be rolled over at the expiry of that term at the new market rate. (i) 財務風險因素－續 (1) 市場風險－續 價格風險－續 於二零二一年六月三十日，若 股票及基金價格上升╱下跌百 分之十，在其他所有變數維持 不變的情況下，本機構於年內 的 盈 餘 將 增 加 ╱ 減 少 約 港 幣 十二億二千七百五十萬元（二零二 零年為港幣九億零五百九十萬元）。 本機構並無承受商品價格風險。 利率風險 利率風險是因利率變動而引致金融 利率工具的公平價值及未來現金 流量減少的風險。本機構投資於若 干按固定利率發行的債券及銀行存 款，故本機構的利息收入和營運現 金流量會受市場利率波動而變更。 本機構的利率風險主要來自債券及 銀行存款。該等銀行存款令本機構 承受現金流量利率風險。存款利率 下調會導致利息收入減少。按固定 利率發行的債券令本機構承受公平 值利率風險。市場利率上調會導致 固定利率的債券價值下降。 本機構利用適當的分配按固定利率 發行的債券及銀行存款來管理其現 金流量及公平值利率風險。 於二零二一年六月三十日，在其他 所有變數維持不變的情況下，若 銀行存款利率上升╱下調二十五 點子，本機構於年內的盈餘會增 加╱減少約港幣一千八百萬元（二 零二零年為港幣一千八百六十萬 元）。以上分析乃假設利率變動於 每個報告期末發生，並已用於計算 當日已存的銀行存款，同時假設將 於下一個報告期間到期的固定年期 投資工具將會於到期日以新的市場 利率續期。 37. FINANCIAL RISK MANAGEMENT – Cont’d 財務風險管理－續