Interim Report 2023

51 INTERIM REPORT 2023 18. FINANCIAL RISK MANAGEMENT (CONTINUED) (ii) Fair value estimation Different levels of fair value measurements have been defined as follows: ‧ Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). ‧ Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). ‧ Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). In estimating the fair value of an asset, 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. (a) Fair value of financial instruments that are measured at fair value on a recurring basis The following table presents the Group’s financial instruments that are measured at fair value at 30 June 2023 and 31 December 2022: Level 1 Level 2 Level 3 Total HK$’million HK$’million HK$’million HK$’million Financial assets At 30 June 2023 Financial assets at FVTPL 2,526 2,321 3 4,850 Equity instruments at FVTOCI — — 10 10 2,526 2,321 13 4,860 At 31 December 2022 Financial assets at FVTPL 2,493 1,461 3 3,957 Equity instruments at FVTOCI — — 30 30 2,493 1,461 33 3,987 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.