| 16 | Interest expense |
| 2017 | 2016 | 2015 | ||||||||||
| RMB million | RMB million | RMB million | ||||||||||
|
Interest on borrowings |
1,628 | 1,444 | 1,320 | |||||||||
|
Interest relating to obligations under finance leases |
2,009 | 1,598 | 1,248 | |||||||||
|
Interest relating to provision for early retirement benefits (Note 45) |
1 | 1 | 2 | |||||||||
|
|
|
|
|
|
|
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|
Total interest expense on financial liabilities not at fair value through profit or loss |
3,638 | 3,043 | 2,570 | |||||||||
|
Less: interest expense capitalized (Note) |
(908 | ) | (624 | ) | (382 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| 2,730 | 2,419 | 2,188 | ||||||||||
|
Interest rate swaps: cash flow hedge, reclassified from equity (Note 18) |
17 | 46 | — | |||||||||
|
|
|
|
|
|
|
|||||||
| 2,747 | 2,465 | 2,188 | ||||||||||
|
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|
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|
|
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Note:
The weighted average interest rate used for interest capitalization was 3.32% per annum in 2017 (2016: 3.22%; 2015: 2.77%).