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Market risk
 12 Months Ended
Dec. 31, 2023
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 Company. The Company's credit risk exposure and the related management process are described in note 5.

 

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

 

 

 

As of December 31,

 

 

 

2022

 

 

2023

 

 

 

RMB’000

 

 

RMB’000

 

Assets subject to market risk

 

 

 

 

 

 

Loans receivable

 

 

556,112

 

 

 

193,682

 

 

 

 

 

 

 

 

 

 

Liabilities subject to market risk

 

 

 

 

 

 

 

 

Loan payable

 

 

161,439

 

 

 

161,439

 

Convertible notes payable

 

 

7,264

 

 

 

10,011

 

 

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