Annual Report 2023

China Merchants China Direct Investments Limited Annual Report 2023 121 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2023 5. FINANCIAL INSTRUMENTS (CONTINUED) Market risk (continued) Currency risk (continued) The carrying amounts of the Group’s monetary assets and monetary liabilities which are denominated in a currency other than the functional currency of the relevant group entities at the reporting date are as follows: 2023 2022 US$ US$ Monetary assets USD 649,891 570,336 Hong Kong Dollar 3,121,864 10,131,654 Monetary liabilities USD 6,372,335 5,900,327 Hong Kong Dollar 56,382 22,891 Foreign currency sensitivity For the currency risk of the Group, if the exchange rate of RMB against USD had increased/decreased by 5%, the Group’s after taxation result for the year would increase/decrease by US$287,000 (2022: decrease/increase by US$223,000). If the exchange rate of RMB against Hong Kong Dollar had increased/decreased by 5%, the Group’s after taxation result for the year would decrease/increase by US$154,000 (2022: increase/decrease by US$422,000). In the opinion of the management, the sensitivity analysis is unrepresentative of the inherent foreign currency risk as the year end exposure does not reflect the exposure during the year. Interest rate risk The Group is not subject to material fair value interest rate risk as the Group’s fixed interest rate bearing financial assets are measured at amortised cost. The Group is exposed to cash flow interest rate risk through the impact of rate changes on interest bearing financial assets (mainly short-term bank deposits at market rate) at market rates. At 31 December 2023, bank balances of US$3,782,035 (2022: US$11,738,362) were interest bearing and withdrawable on demand. Since the prevailing market interest rates are minimal, the Group considers that the overall interest rate risk is not significant.