Interim Report 2023

52 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Notes to the Condensed Consolidated Interim Financial Information For the six months ended 30 June 2023 18. FINANCIAL RISK MANAGEMENT (CONTINUED) (ii) Fair value estimation (continued) (a) Fair value of financial instruments that are measured at fair value on a recurring basis (continued) The fair value of the structured deposits that are accounted for as financial assets at FVTPL is valued based on the foreign exchange rate and gold price (31 December 2022: foreign exchange rate and gold price). As at 30 June 2023, if the foreign exchange rate was 5% (31 December 2022: 5%) higher/lower while all the other variables were held constant, the changes in fair value of the structured deposits would be insignificant (31 December 2022: insignificant). As at 31 December 2022, if the gold price was 5% higher/lower while all the other variables were held constant, the changes in fair value of the structure deposits would be insignificant. The fair value of other unlisted equity instruments that are accounted for as financial assets at FVTPL or equity instruments at FVTOCI is valued based on Guideline Publicly Traded Company method whereas the key inputs to the valuation models include the market multiples, share prices, volatilities and dividend yields of similar companies that are traded in a public market, discount of lack of marketability with reference to the share prices of listed enterprises in similar industries. As at 30 June 2023, if any of the significant unobservable inputs above was 5% (31 December 2022: 5%) higher/lower while all the other variables were held constant, the changes in fair value of these unlisted equity instruments would be insignificant (31 December 2022: insignificant). There were no significant changes in the business or economic circumstances that affect the fair value of the Group’s financial assets or any reclassification of financial assets in the period. The following table presents the changes in level 3 instruments for the six months ended 30 June 2023 and 2022: Financial Equity assets at instruments at FVTPL FVTOCI HK$’million HK$’million For the six months ended 30 June 2023 As at 1 January 2023 3 30 Transfer to assets classified as held for sale — (20) As at 30 June 2023 3 10 For the six months ended 30 June 2022 As at 1 January 2022 3 32 Exchange adjustments — (1) As at 30 June 2022 3 31