NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA)  31.  Financial risk management objectives and policies (cont’d) Foreign currency risk China Yuchai International Limited | Annual Report 2013 117 Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because  of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates  primarily to the Group’s sales, purchases and financial liabilities that are denominated in currencies other than the  respective functional currencies of entities within the Group. The Group also holds cash and bank balances and other  investments denominated in foreign currencies. The currencies giving rise to this risk are primarily the Singapore Dollar,  Malaysian Ringgit, Great British Pound, Canadian Dollar, Renminbi and US Dollar. Foreign currency translation exposure is managed by incurring debt in the operating currency so that where possible  operating cash flows can be primarily used to repay obligations in the local currency. This also has the effect of  minimizing the exchange differences recorded against income, as the exchange differences on the net investment are  recorded directly against equity. The Group’s exposures to foreign currency are as follows: 31.12.2012 Singapore Dollar Euro Great British Pound US Dollar Renminbi Others Rmb’000 Rmb’000 Rmb’000 Rmb’000 Rmb’000 Rmb’000 Held for trading investment 48,761 —  —  —  —  —  Trade and other receivables 534 133 —  23,237 40,633 444 Cash and bank balances 140,858 —  240,566 1,147 13 479 Financial liabilities (51,422) (5,606) —  (271,065) —  —  Trade and other payables (43,498) —  —  (34,233) (1,336) (114) Net assets/(liabilities) 95,233 (5,473) 240,566 (280,914) 39,310 809 31.12.2013 Singapore Dollar Euro Canadian Dollar US Dollar Renminbi Others Rmb’000 Rmb’000 Rmb’000 Rmb’000 Rmb’000 Rmb’000 Held for trading investment 28,105 —  —  —  —  —  Trade and other receivables 561 31,590 —  11,293 35,426 5 Cash and bank balances 171,475 —  —  167,394 —  383 Financial liabilities (48,153) (22,483) (159,607) (25,738) —  —  Trade and other payables (32,077) —  —  (17,580) (1,336) (17) Net assets/(liabilities) 119,911 9,107 (159,607) 135,369 34,090 371 US$’000 19,593 1,488 (26,079) 22,119 5,570 61