HSBC 2011 Annual Report Download - page 371

369
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
derivative transactions with the securitisation vehicles. As such, HSBC continues to be exposed to risks associated
with these transactions.
The rights and obligations that HSBC retains from its continuing involvement in securitisations are initially recorded
as an allocation of the fair value of the financial asset between the part that is derecognised and the part that continues
to be recognised on the date of transfer. The following table analyses the carrying amount of financial assets that
qualified for partial derecognition, the extent of HSBC’s continuing involvement and the associated liabilities:
HSBC’s continuing involvement in financial assets qualifying for partial derecognition
Securitisations at 31 December
2011 2010
US$m US$m
Carrying amount of assets (original) ........................................................................................................ 17,427 17,427
Carrying amount of assets (currently recognised) .................................................................................... 22 42
Carrying amount of associated liabilities (currently recognised) ............................................................ 11 21
23 Interests in associates and joint ventures
Associates
Principal associates of HSBC
At 31 December 2011 At 31 December 2010
Carrying
amount
Fair
value
Carrying
amount
Fair
value
US$m US$m US$m US$m
Listed
Bank of Communications Co., Limited ........................................ 8,507 8,234 6,944 10,773
Industrial Bank Co., Limited ........................................................ 2,214 2,743 1,769 2,799
Ping An Insurance (Group) Company of China, Limited ............ 6,373 8,110 5,596 13,735
The Saudi British Bank ................................................................ 1,886 3,256 1,580 3,224
18,980 22,343 15,889 30,531
At 31 December 2011
Country of
incorporation
HSBC’s
interest in
equity capital
Issued
equity
capital
Listed
Bank of Communications Co., Limited ........................................................... PRC1 19.03% RMB61,886m
Industrial Bank Co., Limited ........................................................................... PRC1 12.80% RMB10,786m
Ping An Insurance (Group) Company of China, Limited ............................... PRC1 15.57% RMB7,916m
The Saudi British Bank ................................................................................... Saudi Arabia 40.00% SR7,500m
Unlisted
Barrowgate Limited2 ........................................................................................ Hong Kong 24.64% –
Vietnam Technological and Commercial Joint Stock Bank ............................ Vietnam 19.61% VND8,788,079m
Yantai Bank Co., Limited3 ............................................................................... PRC1 20.00% RMB2,000m
1 People’s Republic of China.
2 Issued equity capital is less than HK$1m.
3 Yantai Bank Co., Limited was previously known as Yantai City Commercial Bank. The investment is held through Hang Seng Bank
Limited, a 62.14% owned subsidiary of HSBC.
All the above investments in associates are owned by subsidiaries of HSBC Holdings.
Details of all HSBC associates and joint ventures, as required under Section 409 Companies Act 2006, will be
annexed to the next Annual Return of HSBC Holdings filed with the UK Registrar of Companies.
HSBC had US$14,880m (2010: US$12,540m) of investments in associates and joint ventures listed in Hong Kong.
For the year ended 31 December 2011, HSBC’s share of associates and joint ventures’ tax on profit was US$890m
(2010: US$774m), which is included within share of profit in associates and joint ventures in the income statement.