Page 160 - Hong Kong Housing Society 香港房屋協會 - Annual Report 2018 年報

AUDITED FINANCIAL STATEMENTS 已審核財務報表

Notes to the Financial Statements
財務報表附註

5. Financial risk management objectives and 5. 財務風險管理目標及政策€ᚃ

policies (continued)
(c) Market risk (c) 市場風險

Market risk is the risk of loss arising from the movement of ̹ఙࠬᎈ݊Ϊ̮࿆࿁౬ᄆeл
foreign exchange rates, interest rates and market price of ଟʿᗇՎɝ̹ᄆٙᜊਗהପ͛
securities. The Housing Society is exposed to market risk ٙฦ̰fג܊՘ึΪீཀٰୃ
through its investments in equities and fixed income ʿո֛ϗूଡ଼Υҳ༟Ͼ඲ࠦ࿁
investments. Ϥഃ̹ఙࠬᎈf

(i) Foreign exchange risk (i) 外幣對換風險
The Housing Society’s foreign currency positions arise ג܊՘ึ̮࿆ٙܵࡑ˴ࠅ
mainly from its financial assets/liabilities denominated in ԸІՉڢಥʩʿߕʩ̮ٙ
currencies other than Hong Kong dollar and United ࿆ৌਕ༟ପʿৌਕࠋවf
States dollar. The exchange risk between Hong Kong ϾΪಥʩʿߕʩٙ࿁౬ʊ
dollar and United States dollar is considered insignificant ݊ન㢈dה˸࿁౬ࠬᎈʔ
since Hong Kong dollar is pegged to United States dollar. ɽf

The Housing Society is exposed to foreign currency risk ג܊՘ึࠦ࿁̮࿆࿁౬ࠬ
through its fixed deposits, equity investments and fixed ᎈ˴ࠅ݊ԸІ֛ಂπಛe
income investments. The foreign exchange risk on fixed ٰୃʿո֛ϗूଡ଼Υf̮
deposits is controlled and monitored by allocation limits. ࿆֛ಂπಛٙࠬᎈ݊˸ʱ
The equity and fixed income investments, which are ৣࠢᕘԸછՓʿ္࿀f˸
managed by fund managers, are denominated in a ɓᔝɿ஬࿆ΐሪٰٙୃʿ
basket of currencies. The fund managers are encouraged ո֛ϗूଡ଼Υۆ͟ਿږ຾
to hedge their foreign currency exposures to Hong Kong ଣ၍ଣdԨ࣬ኽҳ༟ςۆ
dollar or United States dollar in accordance with the ਗ਼̮࿆࿁䁈މಥʩאߕ
investment guidelines. ʩf

158 Hong Kong Housing Society Annual Report 2017/18