XML 62 R12.htm IDEA: XBRL DOCUMENT

Market risk

12 Months Ended

Dec. 31, 2017

Market Risk

7. Market risk

The main non-trading risk types are interest rates and credit spreads.

Interest rate risk may result in of loss from fluctuations in the future cash flows. Interest rate risk is managed principally through monitoring interest rate gaps and basis risk.

Credit spreads reflect the credit risk of the loans to customers, i.e. risk that a customer or counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group’s credit risk exposure and the related management process are described in note 5.

The following table set out the carrying amount of assets and liabilities subject to market risk:

		As of December 31,
		2016				2017
		RMB’000				RMB’000

Assets subject to market risk
Cash and cash equivalents			96,791				21,717
Loan receivables			675,341				791,390
			772,132				813,107

Liabilities subject to market risk
Loan payable			200,470				226,370

There has been no change to the manner in which the Group manages and measures it’s market exposure in the current year.