HSBC 2015 Annual Report Download - page 379

HSBC HOLDINGS PLC
377
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
12 Trading assets
Accounting policy
Financial assets are classified as held for trading if they have been acquired principally for the purpose of selling in the near term, or form
part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent pattern of short-
term profit-taking. They are recognised on trade date, when HSBC enters into contractual arrangements with counterparties, and are
normally derecognised when sold. They are initially measured at fair value, with transaction costs taken to the income statement.
Subsequent changes in their fair values and interest are recognised in the income statement in ‘Net trading income’.
Trading assets
2015 2014
$m $m
Trading assets:
–
not subject to repledge or resale by counterparties 192,204 247,586
–
which may be repledged or resold by counterparties 32,633 56,607
At 31 December 224,837 304,193
Treasury and other eligible bills 7,829 16,170
Debt securities 99,038 141,532
Equity securities 66,491 75,249
Trading securities at fair value 173,358 232,951
Loans and advances to banks1 22,303 27,581
Loans and advances to customers1 29,176 43,661
At 31 December 224,837 304,193
1 Loans and advances to banks and customers include settlement accounts, stock borrowing, reverse repos and other amounts.
Trading securities valued at fair value1
2015 2014
$m $m
US Treasury and US Government agencies2 14,833 25,880
UK Government 10,177 9,280
Hong Kong Government 6,495 6,946
Other government 48,567 78,774
Asset-backed securities3 3,135 3,494
Corporate debt and other securities 23,660 33,328
Equity securities 66,491 75,249
At 31 December 173,358 232,951
1 Included within these figures are debt securities issued by banks and other financial institutions of $16,403m (2014: $22,399m), of which $1,034m
(2014: $2,949m) are guaranteed by various governments.
2 Includes securities that are supported by an explicit guarantee issued by the US Government.
3 Excludes asset-backed securities included under US Treasury and US Government agencies.
Trading securities listed on a recognised exchange and unlisted
Treasury
and other
eligible bills
Debt
securities
Equity
securities Total
$m $m $m $m
Fair value
Listed1 295 71,184 66,152 137,631
Unlisted2 7,534 27,854 339 35,727
At 31 December 2015 7,829 99,038 66,491 173,358
Fair value
Listed1 1,311 98,028 74,542 173,881
Unlisted2 14,859 43,504 707 59,070
At 31 December 2014 16,170 141,532 75,249 232,951
1 Included within listed investments are $5,722m (2014: $5,956m) of securities listed in Hong Kong.
2 Unlisted treasury and other eligible bills primarily comprise treasury bills not listed on an exchange but for which there is a liquid market.