HSBC 2005 Annual Report Download - page 293

291
Treasury
and other
eligible bills
Debt
securities
available-
for-sale
Debt
securities
held-to-
maturity
Equity
securities Total
US$m US$m US$m US$m US$m
Carrying amount at 31 December 2005
Listed on a recognised exchange ............... – 62,187 4,022 3,394 69,603
Unlisted ..................................................... 25,042 79,512 4,060 4,125 112,739
25,042 141,699 8,082 7,519 182,342
The fair value of listed held-to-maturity debt securities as at 31 December 2005 was US$4,143 million.
Treasury
and other
eligible bills Debt securities
Equity
securities Total
US$m US$m US$m US$m
Carrying amount at 31 December 2004
Listed on a recognised exchange ................................. – 77,920 2,506 80,426
Unlisted ....................................................................... 25,666 75,183 4,057 104,906
25,666 153,103 6,563 185,332
As at 31 December 2004, the fair value of listed debt securities was US$83,176 million, and the fair value of listed
equity securities was US$2,546 million.
Included within listed investments are US$1,246 million (2004: US$3,120 million) of investments listed in Hong
Kong.
HSBC Holdings
2005
Carrying
amount
Fair value
US$m US$m
Available-for-sale debt securities issued by HSBC undertakings ..................................................... 3,256 3,256
Available-for-sale equities................................................................................................................ 261 261
3,517 3,517
As at 31 December 2004, the carrying amount of securities issued by HSBC undertakings was US$1,885 million.
19 Securitisations and other structured transactions
HSBC enters into transactions in the normal course of business by which it transfers recognised financial assets
directly to third parties or to special purpose entities. These transfers may give rise to the full or partial derecognition
of the financial assets concerned.
– Full derecognition occurs when HSBC transfers its contractual right to receive cash flows from the financial
assets and substantially all the risks and rewards of ownership. The risks include credit, interest rate, currency,
prepayment and other price risks.
– Partial derecognition occurs when HSBC sells or otherwise transfers financial assets in such a way that some but
not substantially all of the risks and rewards of ownership are transferred but control is retained. These financial
assets are recognised on the balance sheet to the extent of HSBC’s continuing involvement.
The majority of financial assets that do not qualify for derecognition are (i) debt securities held by counterparties as
collateral under repurchase agreements or (ii) equity securities lent under securities lending agreements. The
following table analyses the carrying amount of financial assets at 31 December 2005 that did not qualify for
derecognition during the year, and their associated financial liabilities: