XML 39 R16.htm IDEA: XBRL DOCUMENT
v3.8.0.1

FAIR VALUE MEASUREMENT | 12 Months Ended
--- | ---
Dec. 31, 2017
FAIR VALUE MEASUREMENT |
FAIR VALUE MEASUREMENT | 9. FAIR VALUE MEASUREMENT In accordance with ASC 820-10, the Company measures financial products, time deposits and available-for-sale investments at fair value on a recurring basis. Available-for-sale investments classified within Level 1 are valued using quoted market prices that currently available on a securities exchange registered with the Securities and Exchange Commission (SEC) and Shanghai Stock Exchange (SSE). Financial products and time deposits classified within Level 2 are valued using directly or indirectly observable inputs in the market place. The available-for-sale investments classified within Level 3 are valued based on a model utilizing unobservable inputs which require significant management judgment and estimation. Assets measured at fair value on a recurring basis are summarized below:
|  | Fair Value Measurement at December 31, 2017 Using |  |  |  |  |
|  | Quoted Prices in Active Market for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Unobservable inputs (Level 3) |  | Fair Value at December 31, 2017 |
|  | RMB |  | RMB |  | RMB |  | RMB |  | US$ |
Financial products |  | — |  | 26,891,722,845 |  | — |  | 26,891,722,845 |  | 4,133,182,123 |
Time deposits |  | — |  | 148,992,785 |  | — |  | 148,992,785 |  | 22,899,772 |
Available-for-sale investments |  |  |  |  |  |  |  |  |  |  |
Listed equity securities |  | 12,435,201,698 |  | — |  | — |  | 12,435,201,698 |  | 1,911,255,506 |
Unlisted debt securities |  | — |  | 409,735,616 |  | 5,707,503,171 |  | 6,117,238,787 |  | 940,202,386 |
Total |  | 12,435,201,698 |  | 27,450,451,246 |  | 5,707,503,171 |  | 45,593,156,115 |  | 7,007,539,787 |
|  | Fair Value Measurement at December 31, 2016 Using |  |  |  |  |
|  | Quoted Prices in Active Market for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Unobservable inputs (Level 3) |  | Fair Value at December 31, 2016 |
|  | RMB |  | RMB |  | RMB |  | RMB |  | US$ |
Financial products |  | — |  | 8,414,292,445 |  | — |  | 8,414,292,445 |  | 1,211,910,189 |
Time deposits |  | — |  | 6,758,382,572 |  | — |  | 6,758,382,572 |  | 973,409,560 |
Available-for-sale investments |  |  |  |  |  |  |  |  |  |  |
Listed equity securities |  | 7,661,880,397 |  | — |  | — |  | 7,661,880,397 |  | 1,103,540,314 |
Unlisted debt securities |  | — |  | — |  | 6,805,596,210 |  | 6,805,596,210 |  | 980,209,738 |
Total |  | 7,661,880,397 |  | 15,172,675,017 |  | 6,805,596,210 |  | 29,640,151,624 |  | 4,269,069,801 |
The roll forward of major Level 3 investments are as following:
|  | Total |
|  | RMB |
Fair value of Level 3 investment as at December 31, 2015 |  | 5,466,103,304 |
Transfer in and/or out of Level 3 |  | 1,587,400,415 |
Disposal of investment |  | (317,261,674 | )
Effect of exchange rate change |  | 325,391,864 |
Other than temporary impairment |  | (36,357,902 | )
The change in fair value of the investment |  | (219,679,797 | )
Fair value of Level 3 investment as at December 31, 2016 |  | 6,805,596,210 |
Transfer in and/or out of Level 3 |  | (1,755,271,349 | )
New addition |  | 455,441,000 |
Disposal of investment |  | (16,916,380 | )
Effect of exchange rate change |  | (193,579,698 | )
Other than temporary impairment |  | (155,500,570 | )
The change in fair value of the investment |  | 567,733,958 |
Fair value of Level 3 investment as at December 31, 2017 |  | 5,707,503,171 |
The Company determined the fair value of their investment by using income approach. The determination of the fair value was based on estimates, judgments and information of other comparable public companies. The significant unobservable inputs adopted in the valuation as of December 31, 2017 are as following:
Unobservable Input |  |  |
Weighted average cost of capital |  | 14.5%~17% |
Lack of marketability discount |  | 10%~15% |
Risk-free rate |  | 1.8%~3.5% |
Expected volatility |  | 32.94%~38% |
Probability |  | Liquidation scenario: 20%~70% Redemption scenario: 20%~30% IPO scenario: 30%~60% |
Dividend yield |  | Nil |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration