Financial Report 2022

Notes to the Consolidated Financial Statements 合併財務報表附註 The University of Hong Kong 香港大學 99 37. FINANCIAL RISK MANAGEMENT – Cont’d (i) Financial risk factors – Cont’d (1) Market risk – Cont’d Price risk Pr i ce r i sk represent s the r i sk that the va l ue 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. At 30 June 2022, if the prices of the respective equity and fund investments had been 10% higher/lower, with all other variables held constant, the Group’s loss for the year would have decreased/increased by approximately HK$980.0 million (2021: increased/ decreased surplus of HK$1,227.5 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 f l ows of i nt eres t bear i ng i ns t rument s wi l l 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. 財務風險管理－續 (i) 財務風險因素－續 (1) 市場風險－續 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。 於二零二二年六月三十日，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 內的虧損將減少╱增加約港幣九億八千 萬元（二零二一年為盈餘增加╱減少港 幣十二億二千七百五十萬元）。 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。 Notes to the Consolidated Financial Statements 合併財務報表附註 2022 Financial Report 二零二二財務報告 100 37. FINANCIAL RISK MANAGEMENT – Cont’d (i) Financial risk factors – Cont’d (1) Market risk – Cont’d Interest rate risk – Cont’d At 30 June 2022, 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 decreased/increased the Group’s loss for the year by approximately HK$18.5 million (2021: increased/decreased surplus by HK$18.0 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. (2) Credit risk The Group’s exposure to credit risk is represented by the carrying value of cash and cash equivalents, bank deposits, loans receivable, accounts receivable, deposits, debt securities and amount due from a Joint Venture. The exposure limits to financial institutions are set by the Investments Sub-Committee according to the deposits base, capital base and the credit rating of the institutions. The credit risk on liquid funds and financial instruments is limited because the counterparties have good credit standing. Loans receivable are mainly loans to staff and students and the Group has established procedures to control the granting and recovery of the loans. Accounts receivable, prepayments and deposits arise from the ordinary activities of the Group and there are ageing controls to limit the exposure. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the consolidated statement of financial position. The Group has four types of financial assets that are subject to the expected credit loss model, including cash and cash equivalents, loans receivable, accounts receivable, prepayments and deposits and debt investments carried at amortised cost. While cash and bank balances are also subject to the impairment requirements of HKFRS 9, the credit risk on cash and bank balances are limited because the counterparties are banks with high credit rating and any identified impairment loss was immaterial. 財務風險管理－續 (i) 財務風險因素－續 (1) 市場風險－續 利率風險－續 於二零二二年六月三十日，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 構於年內的虧損會減少╱增加約港幣 一千八百五十萬元（二零二一年為盈餘 增加╱減少港幣一千八百萬元）。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。 (2) 信貸風險 本機構承受的信貸風險為現金及等同現 金、銀行存款、應收貸款、應收賬項、 押金、債券及合營企業之應收款項。 投資附設委員會根據金融機構的存款基 礎、資本基礎及信貸評級制訂相關的信 貸額度。就本機構的流動資金及金融工 具而言，由於交易方皆為信貸評級良好 的財政機構故此本機構只承受有限之信 貸風險。應收貸款主要為對員工及學生 的貸款，而本機構有既定的程序來控制 發放及收回貸款。應收賬項、預付款及 押金來自本機構的日常營運，以到期日 管理控制有關投放額度。 在本機構之合併財務狀況表內各金融資 產的賬面值已反映了每項財務資產所承 受之最高信貸風險。 本機構有四類財務資產須遵行預期信貸 虧損模式，包括現金及等同現金、應收 貸款、應收賬項、預付款及押金及按攤 銷成本列賬之債務投資。現金及銀行結 存亦需遵循香港財務報告準則第 9 號之 減值要求，因對口單位為擁有高信貸評 級的銀行，故其信貸風險有限及已識辨 之減值虧損並不重大。