| 9 | FINANCIAL ASSETS |
| 9.1 | Held-to-maturity securities |
|
As at 31 December 2017 |
As at 31 December 2016 |
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| RMB million | RMB million | |||||||
|
Debt securities |
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|
Government bonds |
125,866 | 97,196 | ||||||
|
Government agency bonds |
241,808 | 169,001 | ||||||
|
Corporate bonds |
200,869 | 178,444 | ||||||
|
Subordinated bonds/debts |
148,494 | 150,089 | ||||||
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|
|
|
|
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Total |
717,037 | 594,730 | ||||||
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|
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Debt securities |
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Listed in Mainland, PRC |
91,631 | 64,192 | ||||||
|
Listed in Hong Kong, PRC |
136 | 144 | ||||||
|
Listed in Singapore |
19 | 20 | ||||||
|
Unlisted |
625,251 | 530,374 | ||||||
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|
|
|
|
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Total |
717,037 | 594,730 | ||||||
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The estimated fair value of all held-to-maturity securities was RMB692,984 million as at 31 December 2017 (as at 31 December 2016: RMB619,152 million).
Unlisted debt securities include those traded on the Chinese interbank market.
|
Debt securities - Contractual maturity schedule |
As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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Maturing: |
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|
Within one year |
22,496 | 30,615 | ||||||
|
After one year but within five years |
112,932 | 71,661 | ||||||
|
After five years but within ten years |
288,496 | 231,608 | ||||||
|
After ten years |
293,113 | 260,846 | ||||||
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|
|
|
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Total |
717,037 | 594,730 | ||||||
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| 9.2 | Loans |
| As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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Policy loans |
107,957 | 92,442 | ||||||
|
Other loans (i) |
275,547 | 134,131 | ||||||
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|
|
|
|
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Total |
383,504 | 226,573 | ||||||
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| As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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Maturing: |
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|
Within one year |
128,856 | 112,592 | ||||||
|
After one year but within five years |
132,575 | 70,978 | ||||||
|
After five years but within ten years |
90,556 | 25,503 | ||||||
|
After ten years |
31,517 | 17,500 | ||||||
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|
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Total |
383,504 | 226,573 | ||||||
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| (i) | Other loans mainly consisted of different types of asset management products. As at 31 December 2017, asset management products of RMB44,835 million (as at 31 December 2016: RMB37,679 million) were owned by the Group, which are issued by CL AMC (including its subsidiaries), a subsidiary of the Company. The total assets of those products were RMB62,015 million (as at 31 December 2016: RMB114,499 million). Meanwhile, the Group also owned asset management products of RMB202,255 million (as at 31 December 2016: RMB77,999 million) issued by other financial institutions. Asset management products are guaranteed by third parties or with pledge, or have the fiscal annual budget income as the source of repayment, or have higher credit rating borrowers. The Group did not guarantee or provide any financing support for other loans, and considers that the carrying value of other loans represents its maximum risk exposure. |
During the year ended 31 December 2017, the Group’s investment income from the above asset management products was RMB10,150 million (2016: RMB6,820 million), and the related asset management fee received by AMC (including its subsidiaries) for all asset management products it issued was RMB222 million (2016: RMB236 million).
| 9.3 | Term deposits |
| As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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Maturing: |
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Within one year |
97,076 | 185,835 | ||||||
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After one year but within five years |
349,524 | 344,790 | ||||||
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After five years but within ten years |
2,800 | 7,700 | ||||||
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Total |
449,400 | 538,325 | ||||||
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As at 31 December 2017, term deposits of RMB16.691 billion (2016: RMB13.2 billion) deposited in banks for overseas borrowings backed by domestic deposits business are restricted to use.
In September 2016, CL Hotel Investor, L.P. and Glorious Fortune Forever Limited, subsidiaries of the Company, entered into a loan agreement with the New York and Seoul branches of the Agricultural Bank of China, respectively. In December 2016, Sunny Bamboo Limited and Golden Bamboo Limited, subsidiaries of the Company, entered into a loan agreement with the Hong Kong branch of the Agricultural Bank of China. As at 31 December 2017, the Company arranged overseas borrowings backed by domestic term deposit transactions with the Beijing Xicheng branch of the Agricultural Bank of China with amounts of RMB6,861 million, RMB7,080 million and RMB750 million, respectively.
On 6 December 2017, New Fortune Wisdom Limited and New Capital Wisdom Limited, subsidiaries of the Company’s subsidiary, Ningbo Meishan Bonded Port Area Guo Yang Guo Sheng Investment Partnership (“Guo Yang Guo Sheng”), entered into a loan agreement with a subsidiary of the Agricultural Bank of China. Guo Yang Guo Sheng arranged overseas borrowings backed by domestic deposit transactions with the Beijing Xicheng branch of the Agricultural Bank of China. As at 31 December 2017, the amounts of term deposits and current deposits are RMB2,000 million and RMB1,247 million, respectively.
| 9.4 | Statutory deposits - restricted |
| As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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Contractual maturity schedule: |
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Within one year |
3,933 | 1,720 | ||||||
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After one year but within five years |
2,400 | 4,613 | ||||||
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Total |
6,333 | 6,333 | ||||||
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Insurance companies in China are required to deposit an amount that equals 20% of their registered capital with banks in compliance with regulations of the CBIRC (formerly CIRC). These funds may not be used for any purpose other than for paying off debts during liquidation proceedings.
| 9.5 | Available-for-sale securities |
| As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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Available-for-sale securities, at fair value |
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Debt securities |
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Government bonds |
24,632 | 21,653 | ||||||
|
Government agency bonds |
157,765 | 146,310 | ||||||
|
Corporate bonds |
197,133 | 188,337 | ||||||
|
Subordinated bonds/debts |
13,495 | 16,708 | ||||||
|
Wealth management products |
430 | 11,321 | ||||||
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Others (i) |
61,669 | 15,429 | ||||||
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Subtotal |
455,124 | 399,758 | ||||||
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Equity securities |
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Funds |
91,344 | 105,290 | ||||||
|
Common stocks |
129,424 | 100,131 | ||||||
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Preferred stocks |
31,651 | 27,880 | ||||||
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Wealth management products |
40,327 | 81,854 | ||||||
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Others (i) |
42,027 | 30,673 | ||||||
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Subtotal |
334,773 | 345,828 | ||||||
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Available-for-sale securities, at cost |
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Equity securities |
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Others (i) |
20,837 | 20,837 | ||||||
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Total |
810,734 | 766,423 | ||||||
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| (i) | Other available-for-sale securities mainly include unlisted equity investments, private equity funds and trust schemes. The Group did not guarantee or provide any financing support for other available-for-sale securities, and considered that the carrying value of other available-for-sale securities represents its maximum risk exposure. |
| As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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|
Debt securities |
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|
Listed in Mainland, PRC |
44,929 | 37,163 | ||||||
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Unlisted |
410,195 | 362,595 | ||||||
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Subtotal |
455,124 | 399,758 | ||||||
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Equity securities |
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Listed in Mainland, PRC |
93,384 | 91,011 | ||||||
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Listed in Hong Kong, PRC |
41,507 | 25,034 | ||||||
|
Listed overseas |
132 | 232 | ||||||
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Unlisted |
220,587 | 250,388 | ||||||
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Subtotal |
355,610 | 366,665 | ||||||
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Total |
810,734 | 766,423 | ||||||
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Unlisted debt securities include those traded on the Chinese interbank market and those not publicly traded. Unlisted equity securities include those not traded on stock exchanges, which are mainly open-ended funds with public market price quotation and wealth management products.
|
Debt securities - Contractual maturity schedule |
As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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|
Maturing: |
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|
Within one year |
42,410 | 33,261 | ||||||
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After one year but within five years |
153,630 | 144,443 | ||||||
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After five years but within ten years |
167,552 | 113,779 | ||||||
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After ten years |
91,532 | 108,275 | ||||||
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Total |
455,124 | 399,758 | ||||||
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| 9.6 | Securities at fair value through profit or loss |
| As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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Debt securities |
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|
Government bonds |
2,081 | 380 | ||||||
|
Government agency bonds |
9,084 | 6,762 | ||||||
|
Corporate bonds |
66,915 | 144,131 | ||||||
|
Others |
4,811 | 3,133 | ||||||
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Subtotal |
82,891 | 154,406 | ||||||
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Equity securities |
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Funds |
9,892 | 14,683 | ||||||
|
Common stocks |
44,026 | 40,035 | ||||||
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Subtotal |
53,918 | 54,718 | ||||||
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|
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Total |
136,809 | 209,124 | ||||||
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Debt securities |
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|
Listed in Mainland, PRC |
26,776 | 19,512 | ||||||
|
Listed overseas |
292 | 89 | ||||||
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Unlisted |
55,823 | 134,805 | ||||||
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|
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Subtotal |
82,891 | 154,406 | ||||||
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Equity securities |
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|
Listed in Mainland, PRC |
39,442 | 37,614 | ||||||
|
Listed in Hong Kong, PRC |
79 | 74 | ||||||
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Listed overseas |
7,187 | 6,284 | ||||||
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Unlisted |
7,210 | 10,746 | ||||||
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Subtotal |
53,918 | 54,718 | ||||||
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Total |
136,809 | 209,124 | ||||||
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Unlisted debt securities include those traded on the Chinese interbank market and those not publicly traded. Unlisted equity securities include those not traded on stock exchanges, which are mainly open-ended funds with public market price quotation.
| 9.7 | Securities purchased under agreements to resell |
| As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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Maturing: |
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|
Within 30 days |
36,055 | 43,518 | ||||||
|
After 30 but within 90 days |
130 | 20 | ||||||
|
|
|
|
|
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Total |
36,185 | 43,538 | ||||||
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| 9.8 | Accrued investment income |
| As at 31 December 2017 RMB million |
As at 31 December 2016 RMB million |
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|
Bank deposits |
24,942 | 35,763 | ||||||
|
Debt securities |
21,423 | 17,642 | ||||||
|
Others |
4,276 | 2,540 | ||||||
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Total |
50,641 | 55,945 | ||||||
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Current |
44,789 | 44,722 | ||||||
|
Non-current |
5,852 | 11,223 | ||||||
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Total |
50,641 | 55,945 | ||||||
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