Annual Report 2023

122 12 China Merchants China Direct Investments Limited Annual Report 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2023 5. FINANCIAL INSTRUMENTS (CONTINUED) Market risk (continued) Interest rate risk (continued) Interest rate sensitivity No sensitivity analysis on cash flow interest rate risk is prepared as the Group considers the effect would be minimal at the end of the reporting period. Price risk The Group is exposed to price risk through its investments as disclosed in note 15 and financial liabilities in note 20 which are measured at FVTPL. Price sensitivity The sensitivity analyses below have been determined based on the exposure to price risk at the end of the reporting period. If the market bid prices of the listed equity securities had been 20% (2022: 20%) higher/lower, the Group’s after taxation result for the year would increase/decrease by US$40,252,000 (2022: decrease/increase by US$50,032,000). This is mainly attributable to the changes in fair values of the listed equity investments held by the Group. If the fair value of the investments other than listed equity securities had been 20% (2022: 20%) higher/lower, the Group’s after taxation result for the year would increase/decrease by US$67,139,000 (2022: decrease/ increase by US$57,103,000). This is mainly attributable to the changes in fair values of the investments held by the Group. In the opinion of the management, the sensitivity analysis is unrepresentative of the price risk as the year end exposure does not reflect the exposure during the year.