Annual Report 2019

165 ANNUAL REPORT 2019 3. FINANCIAL RISK MANAGEMENT (CONTINUED) 3.3 Fair value estimation (continued) In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where level 1 inputs are not available, the Group engages third party qualified valuers to perform the valuation. The management engaged qualified external valuers to establish the appropriate valuation techniques and inputs to the models. Information about the valuation techniques and inputs used in determining the fair value of various assets is disclosed below. (i) Fair value of financial instruments that are measured at fair value on a recurring basis The following tables present the Group’s financial instruments that are measured at fair value at 31 December 2019 and 2018: Level 1 Level 2 Level 3 Total HK$’million HK$’million HK$’million HK$’million At 31 December 2019 Financial assets Financial assets at FVTPL 1,957 688 3 2,648 Equity instruments at FVTOCI — — 9 9 1,957 688 12 2,657 Financial liabilities Financial liabilities at FVTPL — — (4,532) (4,532) At 31 December 2018 Financial assets Financial assets at FVTPL 1,771 — 612 2,383 Equity instruments at FVTOCI — — 110 110 1,771 — 722 2,493 Financial liabilities Financial liabilities at FVTPL — — (4,383) (4,383) Set out below is the information about how the fair values of the above financial instruments are determined, including the valuation techniques and inputs used: The fair value of the freely traded listed equity instruments that are accounted for as financial assets at FVTPL is valued based on the quoted prices in active markets for the identical assets directly.