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Investments | 6 Months Ended
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Jun. 30, 2020
Schedule of Investments [Abstract] |
Investments | 4. INVESTMENTS Short-term Investments As of June 30, 2020, the Company’s short-term investments comprised of only debt securities. Short-term held-to-maturity securities were mainly deposits in commercial banks with maturities of less than one year for which the Company has the positive intent and ability to hold those securities to maturity. The short-term available-for-sale securities include wealth management products issued by commercial banks and other financial institutions. During the six-month periods ended June 30, 2019 and 2020, the Company recorded interest income from its short-term investments of RMB1.8 billion and RMB2.5 billion (US$351 million), in the condensed consolidated statements of comprehensive income, respectively. Short-term investments classification as of December 31, 2019 and June 30, 2020 were shown as below:
|  | As of December 31, 2019 |
|  | Cost or Amortized cost |  |  | Gross unrecognized holding gains |  |  | Gross unrecognized holding losses |  |  | Gross unrealized gains |  |  | Gross unrealized losses |  |  | Fair value |
|  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |
|  | (In millions) |
Held-to-maturity debt investments |  |  | 107,287 |  |  |  | 367 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 107,654 |
Available-for-sale debt investments |  |  | 5,440 |  |  |  | — |  |  |  | — |  |  |  | 197 |  |  |  | — |  |  |  | 5,637 |
|  | As of June 30, 2020 |
|  | Cost or Amortized cost |  |  | Gross unrecognized holding gains |  |  | Gross unrecognized holding losses |  |  | Gross unrealized gains |  |  | Gross unrealized losses |  |  | Fair value |
|  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
|  | (In millions) |
|  | (unaudited) |
Held-to-maturity debt investments |  |  | 125,022 |  |  |  | 1,049 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 126,071 |  |  |  | 17,844 |
Available-for-sale debt investments |  |  | 7,138 |  |  |  | — |  |  |  | — |  |  |  | 14 |  |  |  | — |  |  |  | 7,152 |  |  |  | 1,012 |
Long-term Investments Equity investments at fair value with readily determinable fair value Equity investments at fair value with readily determinable fair value represent investments in the equity securities of publicly listed companies, for which the Company does not have significant influence. Equity investments at fair value without readily determinable fair value In accordance with ASC 321, the Company elected to use the measurement alternative to measure such investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. Impairment charges recognized on equity investments measured at fair value using the measurement alternative was RMB527 million and RMB2.3 billion (US$327 million) for the six-month periods ended June 30, 2019 and 2020, respectively. The total carrying value of equity investments measured at fair value using the measurement alternative held as of December 31, 2019 and June 30, 2020 were as follows:
|  | As of December 31, 2019 |  |  | As of June 31, 2020 |  |  | As of June 31, 2020 |
|  | RMB |  |  | RMB |  |  | US$ |
|  | (In millions) |
|  |  |  |  | (unaudited) |
Initial cost basis |  |  | 21,211 |  |  |  | 21,911 |  |  |  | 3,101 |
Cumulative unrealized gains |  |  | 5,636 |  |  |  | 6,884 |  |  |  | 974 |
Cumulative unrealized losses (including impairment) |  |  | (2,161 | ) |  |  | (4,272 | ) |  |  | (605 | )
Total carrying value |  |  | 24,686 |  |  |  | 24,523 |  |  |  | 3,470 |
Total unrealized and realized gains and losses of equity securities without readily determinable fair values for the six-month periods ended June 30, 2019 and 2020 were as follows:
|  | For the six months ended |
|  | June 30, 2019 |  |  | June 30, 2020 |  |  | June 30, 2020 |
|  | RMB |  |  | RMB |  |  | US$ |
|  | (In millions) |
|  | (unaudited) |
Gross unrealized gains |  |  | 1,157 |  |  |  | 1,340 |  |  |  | 190 |
Gross unrealized losses (including impairment) (i) (ii) |  |  | (527 | ) |  |  | (2,689 | ) |  |  | (381 | )
Net unrealized gains (losses) on equity securities held |  |  | 630 |  |  |  | (1,349 | ) |  |  | (191 | )
Net realized gains on equity securities sold |  |  | 222 |  |  |  | 252 |  |  |  | 36 |
Total net gains (losses) recognized in others, net |  |  | 852 |  |  |  | (1,097 | ) |  |  | (155 | )
(i) | Gross unrealized losses (downward adjustments excluding impairment) were nil and RMB100 million (US$14 million) for the six-month periods ended June 30, 2019 and 2020, respectively.
(ii) | Including re-measurement losses of nil and RMB278 million (US$39 million) relating to previously held equity interest in business combination achieved in stages for the six-month periods ended June 30, 2019 and 2020, respectively.
Equity method investments The carrying amounts of the Company’s equity method investments were RMB27.1 billion and RMB25.7 billion (US$3.6 billion) as of December 31, 2019 and June 30, 2020, respectively. For the six-month periods ended June 30, 2019 and 2020, the impairment recognized for equity method investments were nil and RMB150 million (US$21 million), respectively. Investment accounted for at fair value Long-term equity investments in unlisted companies held by consolidated investment companies are accounted for at fair value in accordance with ASC 946-320. These investments are carried at fair value with realized or unrealized gains and losses recorded in “Others, net” in the condensed consolidated statements of comprehensive income. The methodology used in the determination of fair values for held-to-maturity debt investments, available-for-sale debt investments, equity investments with readily determinable fair values and other investment securities accounted for at fair value were disclosed in Note 7 . Long-term investments classification, excluding equity method investments and equity investments at fair value without readily determinable fair value, as of December 31, 2019 and June 30, 2020 were shown as below:
|  | As of December 31, 2019 |
|  | Cost or Amortized cost |  |  | Gross unrecognized holding gains |  |  | Gross unrecognized holding losses |  |  | Gross unrealized gains |  |  | Gross unrealized losses |  |  | Fair value |
|  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |
|  | (In millions) |
Equity investments at fair value with readily determinable fair value |  |  | 11,769 |  |  |  | — |  |  |  | — |  |  |  | 2,195 |  |  |  | (2,630 | ) |  |  | 11,334 |
Available-for-sale debt investments |  |  | 3,913 |  |  |  | — |  |  |  | — |  |  |  | 138 |  |  |  | (81 | ) |  |  | 3,970 |
Investments accounted for at fair value |  |  | 1,309 |  |  |  | — |  |  |  | — |  |  |  | 597 |  |  |  | (87 | ) |  |  | 1,819 |
Long-term held-to-maturity investments |  |  | 496 |  |  |  | — |  |  |  | (5 | ) |  |  | — |  |  |  | — |  |  |  | 491 |
|  | As of June 30, 2020 |
|  | Cost or Amortized cost |  |  | Gross unrecognized holding gains |  |  | Gross unrecognized holding losses |  |  | Gross unrealized gains |  |  | Gross unrealized losses |  |  | Fair value |
|  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
|  | (In millions) |
|  | (unaudited) |
Equity investments at fair value with readily determinable fair value |  |  | 12,346 |  |  |  | — |  |  |  | — |  |  |  | 3,632 |  |  |  | (3,509 | ) |  |  | 12,469 |  |  |  | 1,765 |
Available-for-sale debt investments |  |  | 3,528 |  |  |  | — |  |  |  | — |  |  |  | 186 |  |  |  | (113 | ) |  |  | 3,601 |  |  |  | 510 |
Investments accounted for at fair value |  |  | 1,430 |  |  |  | — |  |  |  | — |  |  |  | 554 |  |  |  | (153 | ) |  |  | 1,831 |  |  |  | 259 |
Long-term held-to-maturity investments |  |  | 502 |  |  |  | 11 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 513 |  |  |  | 73 |
Available-for-sale debt investments are convertible debt instruments issued by private companies and investment in preferred shares that is redeemable at the Company’s option, which are measured at fair value. Investment in preferred shares that are redeemable at the Company’s option have no contractual maturity date. The following table summarizes the estimated fair value of available-for-sale debt investments with stated contractual dates, classified by the contractual maturity date of the investments:
|  | As of December 31, |  |  | As of June 30, |
|  | 2019 |  |  | 2020 |  |  | 2020 |
|  | RMB |  |  | RMB |  |  | US$ |
|  | (In millions) |
|  |  |  |  | (unaudited) |
Due in 1 year |  |  | 505 |  |  |  | — |  |  |  | — |
Due in 1 year through 5 years |  |  | 10 |  |  |  | 1,550 |  |  |  | 220 |
Due in 5 years through 10 years |  |  | 1,486 |  |  |  | — |  |  |  | — |
Not due at a single maturity date |  |  | 1,969 |  |  |  | 2,051 |  |  |  | 290 |
Total |  |  | 3,970 |  |  |  | 3,601 |  |  |  | 510 |

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- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 321 -URI http://asc.fasb.org/topic&trid=75115024 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 325 -URI http://asc.fasb.org/topic&trid=2197064 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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- References No definition available. + Details
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