Annual Report 2012

Notes to the financial statements(Expressed in millions of RMB, unless otherwise stated)63 Risk Management (continued)(7) Capital management (continued)The Group’s consolidated regulatory capital positions calculated in accordance with the guidance issued by the CBRC as at the endof the reporting period are as follows:Note 2012 2011Core capital adequacy ratio (a) 11.32% 10.97%Capital adequacy ratio (b) 14.32% 13.68%Components of capital baseCore capital:– Share capital 250,011 250,011– Capital reserve, investment revaluation reserve and exchange reserve (c) 130,535 130,562– Surplus reserve and general reserve 167,196 134,918– Retained earnings (c),(d) 323,735 229,649– Non-controlling interests 4,275 5,520875,752 750,660Supplementary capital:– General allowance for doubtful debts 76,605 66,180– Positive changes in fair value of financial instruments at fair value through profit or loss 1,563 3,675– Subordinated bonds issued 160,000 120,000238,168 189,855Total capital base before deductions 1,113,920 940,515Deductions:– Goodwill (1,456) (1,662)– Unconsolidated equity investments (17,882) (12,402)– Others (e) (1,153) (1,945)Net capital 1,093,429 924,506Risk-weighted assets (f) 7,637,705 6,760,117Notes:(a)(b)(c)(d)(e)(f)Core capital adequacy ratio is calculated by dividing the net amount of core capital, which is after deductions of 100% of goodwill and 50% of unconsolidated equity investments, and otheritems, by risk-weighted assets.Capital adequacy ratio is calculated by dividing the net capital by risk-weighted assets.The investment revaluation reserve arising from the accumulated net positive changes in the fair value of available-for-sale financial assets is excluded from the core capital and 50% of thebalance is included in the supplementary capital. In addition, the unrealised accumulated net positive changes in fair value of financial instruments at fair value through profit or loss, net ofincome tax, are excluded from the core capital and included in the supplementary capital.The dividend proposed after the reporting period has been deducted from retained earnings.Others mainly represent investments in those asset backed securities specified by CBRC which required reduction.The balances of risk-weighted assets include an amount equal to 12.5 times the Group’s market risk capital.China Construction Bank Corporation annual report 2012207