(in RMB
million) |
2019 |
2018 |
Change |
Rate |
Column No. |
1 |
2 |
3=1-2 |
4=3÷2 |
Gross income |
1,273,091.00 |
1,082,146.00 |
190,945.00 |
17.65% |
Net earned premiums |
748,779.00 |
677,703.00 |
71,076.00 |
10.49% |
Investment income |
101,747.00 |
31,974.00 |
69,773.00 |
218.22% |
Unrealized
gains/(losses) |
44,091.00 |
-28,284.00 |
72,375.00 |
255.89% |
Financial assets at fair value through
profit or loss |
44,127 |
-27,948 |
72,075.00 |
257.89% |
Bonds |
340 |
1,677 |
- 1,337.00 |
79.73% |
Funds |
14,597 |
-12,150 |
26,747.00 |
220.14% |
Stocks |
20,989 |
-28,688 |
49,677.00 |
173.16% |
Wealth
management investments and other investments |
8,201 |
11,213 |
- 3,012.00 |
26.86% |
As at 31 December 2018 | |||||||
(in RMB million) | Row No. | Level 1 | Level 2 | Level 3 | Total | Sum of level 2 and level 3 | Ratio |
Column No. |
| 1 | 2 | 3 | 4=1+2+3 | 5=2+3 | 6=5÷4 |
Bonds | 1 | 18,343 | 151,024 | – | 169,367.00 | 151,024.00 | 89.17% |
Funds | 2 | 131,861 | 59,259 | 6,231.00 | 197,351.00 | 65,490.00 | 33.18% |
Stocks | 3 | 79,294 | 10,346 | – | 89,640.00 | 10,346.00 | 11.54% |
Wealth management investments and other investments | 4 | 4 | 270,321 | 98,256.00 | 368,581.00 | 368,577.00 | 100.00% |
Total | 5=1+2+3+4 | 229,502 | 490,950 | 104,487.00 | 824,939 | 595,437 | 72.18% |
As at 31 December 2019 | |||||||
Bonds | 6 | 15,484.00 | 210,748.00 | 59.00 | 226,291.00 | 210,807.00 | 93.16% |
Funds | 7 | 130,725.00 | 78,965.00 | 4,375.00 | 214,065.00 | 83,340.00 | 38.93% |
Stocks | 8 | 111,289.00 | 4,313.00 | 115,602.00 | 4,313.00 | 3.73% | |
Wealth management investments and other investments | 9 | 263,009.00 | 142,106.00 | 405,115.00 | 405,115.00 | 100.00% | |
Total | 10=6+7+8+9 | 257,498.00 | 557,035.00 | 146,540.00 | 961,073.00 | 703,575.00 | 73.21% |
Investee name |
Proportion of ordinary shares held |
Veolia Water (Yellow River) Investment Co., Ltd |
48.76% |
Veolia Water (Liuzhou) Investment Co., Ltd |
44.78% |
Lufax Holding Ltd |
40.61% |
Ping An Healthcare and Technology Co., Ltd |
41.27% |
Ping An Medical and Healthcare Management Co., Ltd |
38.54% |
OneConnect
Financial Technology Co., Ltd |
36.61% |
Shenzhen China
Merchants-Ping An Asset Management Co., Ltd |
38.81% |
Rights |
Circumstances that complicates judgment
of power |
Rights to appoint, reassign or remove
members of an investee’s key management personnel who have the ability to
direct the relevant activities |
CCP sets units which have substantial
rights over key personnel appointment both in Ping An and in its investees. |
Rights to appoint or remove another
entity that directs the relevant activities |
CCP’s absolute control over society |
Rights to direct the investee to enter
into, or veto any changes to, transactions for the benefit of the investor |
CCP sets units in investee, whose members
have such rights. |
Other rights (such as decision‑making
rights specified in a management contract) that give the holder the ability
to direct the relevant activities. |
CCP often communicates orally, falsifies
or deletes or burns documents in the same way it conducted in PRC Consulate to
Houston before it got shut down. |
In 2019, PAIC reported
in its income statement net impairment losses of RMB65.27bn on financial assets
and in balance sheet, loans and advances to customers and financial assets at
amortized cost of RMB2.24tn and RMB2.28tn respectively, which were two largest
numbers. Net impairment losses on loans and advances to customers were
RMB53.29bn, which were the main part of net impairment losses on financial assets but
impairment losses on financial assets at amortized cost were only RMB5.11bn or
accumulated 0.73% of gross amount.
Extract from Note “13. NET IMPAIRMENT
LOSSES ON FINANCIAL ASSETS” of year 2019
(in RMB
million) |
Net impairment
losses |
Provision
balance |
Gross
(Including interest receivable) |
Ratio of
provision |
Column No. |
1 |
2 |
3 |
4=2÷3 |
Loans and
advances to customers |
53,288.00 |
69,560.00 |
2,309,956.00 |
3.01% |
Financial
assets at amortized cost |
5,113.00 |
16,719.00 |
2,297,944.00 |
0.73% |
More interestingly,
despite increase in gross amount of financial assets at
amortized cost by 10.03% and growing macroeconomic depression in PRC, net impairment
losses on financial assets at amortized cost contracted 2.5%.
Extract of Financial assets at amortized
cost
(in RMB million) |
2019 |
2018 |
Increase by |
Column No. |
1 |
2 |
3= (1-2) ÷ 2 |
Gross amount |
2,297,944.00 |
2,088,456.00 |
10.03% |
Net impairment losses |
5,113.00 |
5,244.00 |
-2.50% |
More importantly, subsequent
measurement of both loans and advances to customers and financial assets which
were carried at amortized cost involved ECL measurement that is subject to
manipulation risk.
Misstatement risk development for the half year ended
30 June 2020
Interim Condensed Consolidated
Financial Information was given an unmodified review opinion on 27 August
2020 by HKPWC when the Hong Kong National Security Law had further
compromised rule of law and free speech, and thereon hampered objectivity and
independence of HKPWC further. Before 27 August 2020, US had suspended
recognition HK's autonomous status and Hong Kong Autonomy Act commenced
and any work of Hong Kong Accountants should be denied of any credit.
ECL misstatement risk remained because ratio of
provision is in huge disparity
(in RMB million) |
Impairment losses |
Provision balance |
Gross (Including interest receivable) |
Ratio of provision |
Loans and advances to customers |
32,302.00 |
87,501.00 |
2,281,584.00 |
3.84% |
Financial assets at amortized cost |
5,662.00 |
21,943.00 |
2,476,160.00 |
0.89% |
There was an abrupt
increase in other comprehensive loss from financial assets carried at fair value
with changes through other comprehensive income. It indicated PAIC had made use
of this pandemic to absorb or cover-up previously understated loss and significant
material impairment loss or fair value misstatement risk imbedded in its all
the financial assets it reported.
So it’s wise to divest all the Hong Kong financial instruments such as the junk toxic assets of Ping An, Tencent, HSBC or BOC and convert all your HKDs into USDs as soon as possible ahead of market turmoil.
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