NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA)  32.  Capital management (cont’d) 33.  Fair value measurement China Yuchai International Limited | Annual Report 2013 121 No changes were made in the objectives, policies or processes during the years ended December 31, 2012 and 2013. As disclosed in Note 25, certain subsidiaries of the Group are required by the relevant authorities in the PRC to  contribute and maintain a non-distributable statutory reserve fund whose utilization is subject to approval by the  relevant authorities in the PRC. This externally imposed capital requirement has been complied with by the subsidiaries  of the Group for the financial years ended December 31, 2012 and 2013. The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities. Fair value hierarchy for financial instruments measured at fair value as at December 31, 2012: Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at December 31, 2013: There have been no transfers between Level 1 and Level 2 during the period. Total Level 1 Level 2 Level 3 Rmb’000 Rmb’000 Rmb’000 Rmb’000 Financial assets measured at fair value Held for trading investment: Quoted equity shares – TCL (Note 18) 48,761 48,761 —  —  Financial liabilities measured at fair value Derivative financial liability: Foreign exchange forward contract – US Dollar (Note 15(a)) 9,467 —  9,467 —  Fair value measurement using Date of  valuation Quoted prices in active markets Significant observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) Rmb’000 Rmb’000 Rmb’000 Rmb’000 Assets measured at fair value Held for trading investment: Quoted equity shares – TCL (Note 18) December 31, 2013 28,105 28,105 —  —  Derivative financial asset: Foreign exchange forward contract  – Canadian Dollar (Note 18) December 31, 2013 2,731 —  2,731 — 