Annual Report 2020

168 Notes to the Financial Statements Annual Report 2020 Miramar Hotel and Investment Company, Limited 23 Financial risk management and fair values (Continued) (b) Liquidity risk (continued) Contractual undiscounted cash flow Within 1 year or on demand More than 1 year but less than 2 years More than 2 years but less than 5 years Total Carrying amount HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 At 31 December 2019 Trade and other payables 332,298 – – 332,298 332,298 Amounts due to associates 4,296 – – 4,296 4,296 Amounts due to holders of non-controlling interests of subsidiaries 78,904 – – 78,904 78,547 Bank loan 2,732 – – 2,732 2,727 Lease liabilities 64,562 44,146 46,884 155,592 149,709 Rental deposits received 89,654 – – 89,654 89,654 Deferred liabilities – 58,866 123,040 181,906 181,906 572,446 103,012 169,924 845,382 839,137 (c) Equity price risk The Group is exposed to equity price changes arising from equity investments held for trading and non-trading purposes (see note 13). The Group’s listed investments are listed in Hong Kong and overseas. Decisions to buy or sell trading securities are based on daily monitoring of the performance of individual securities compared to that of the Index and other industry indications, as well as the Group’s liquidity needs. Listed investments that are not held for trading purposes have been chosen taking reference to their long term growth potential and returns and are monitored regularly for performance against expectations. Given that the volatility of the stock markets may not have a direct correlation with the Group’s investment portfolio, it is impractical to determine the impact that the changes in stock market indices would have on the Group’s portfolio of equity investments. At 31 December 2020, it is estimated that an increase/decrease of 5% (2019: 5%) in the market value of the Group’s listed securities, with all other variables held constant, the Group’s profit after tax would have increased/decreased by HK$314,000 (2019: HK$265,000). The Group’s total equity would have increased/decreased by HK$4,262,000 (2019: HK$4,747,000). The sensitivity analysis above 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 change in market value had occurred at the end of the reporting period and had been applied to re- measure those financial instruments held by the Group which expose the Group to equity price risk at the end of the reporting period. It is also assumed that the fair values of the Group’s listed investments would change in accordance with the market values, and that all other variables remain constant. The analysis is performed on the same basis for 2019.