Hong Kong Regulations

BANKING (DISCLOSURE) RULES - SECT 63

Equity exposures: disclosures for banking book positions

An authorized institution shall, in respect of its equity exposures booked in
its banking book—

   (a)  disclose how it differentiates between its equity holdings taken for
        relationship and strategic reasons and its equity holdings taken for
        other reasons (including the reason of capital gains);

   (b)  disclose a description of its main policies covering the valuation and
        accounting of equity holdings, including—

        (i)    the accounting techniques and valuation methodologies the
               institution uses;

        (ii)   the key assumptions and practices affecting such valuation; and

        (iii)  any significant changes in those practices during the annual 
               reporting period; and

   (c)  disclose—

        (i)    the cumulative realized gains or losses arising from sales and
               liquidations of its equity holdings in the
               annual reporting period; and

        (ii)   the total unrealized gains or losses recognized in the
               institution's reserves but not through the profit and loss
               account, and any amount of unrealized gains included in, or
               unrealized losses deducted from, the institution's
               supplementary capital for capital adequacy ratio purposes.