2013 — Page 112

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Hong Kong Ferry (Holdings) Company Limited Annual Report 2013

Notes to the Accounts (Continued)

24 FINANCIAL RISK MANAGEMENT AND FAIR VALUES OF FINANCIAL

INSTRUMENTS (Continued)

(c) Currency risk (Continued)

The sensitivity analysis assumes that the change in foreign exchange rates had been applied to re-measure those financial instruments held by the Group which expose the Group to foreign currency risk at the balance sheet date. The analysis is performed on the same basis for 2012.

(d)

Equity price risk

The Group is exposed to equity price change arising from equity investments classified as available-for-sale securities (see note 16). Other than unquoted securities held for strategic purpose, all of these investments are listed.

Listed investments held in the available-for-sale securities portfolio have been chosen based on their longer term growth potential and are monitored regularly for performance against expectations.

Sensitivity analysis

At 31 December 2013, it is estimated that an increase/decrease of 10% (2012: 10%) in the market prices of the investments in available-for-sale securities, with all other variables held constant would have increased/ decreased the securities revaluation reserve by approximately HK$40,074,000 (2012: HK$71,159,000).

The sensitivity analysis indicates the instantaneous change in the Group's profit after tax (and retained profits) and other components of consolidated equity that would arise assuming that the changes in the stock market index or other relevant risk variables had occurred at the balance sheet date and had been applied to re- measure those financial instruments held by the Group which expose the Group to equity price risk at the balance sheet date. The analysis is performed on the same basis for 2012.