China Strategic Holdings Ltd. provided earnings guidance for the year ended December 31, 2016. Based on a preliminary review by the company's management on the management accounts of the Group, the Board of Directors of the company announced that the group expects to record a substantial loss for the year ended 31 December 2016 as compared with the profit recorded by the Group for the year ended 31 December 2015. Such substantial loss was mainly attributable to the net loss on financial assets at fair value through profit or loss of approximately HKD 653.4 million (which comprised of net unrealised loss and net realised loss of approximately HKD 169.7 million and HKD 483.7 million respectively) expected to be recorded for the year ended 31 December 2016 as compared with the net gain on financial assets at fair value through profit or loss of approximately HKD 665.6 million (which comprised of net unrealised gain and net realised gain of approximately HKD 623.3 million and HKD 42.3 million respectively) recorded by the Group for the year ended 31 December 2015, despite there was a significant increase in profit expected to be generated by the Group's money lending business when compared to its results for the year ended 31 December 2015. The company considers such expected substantial loss from its investment in securities business was due primarily to the reversal of unrealised gains recognized for certain securities during the year ended 31 December 2015 and the volatile Hong Kong stock market during the year ended 31 December 2016, whereas the expected increase in profit generated by the Group's money lending business was mainly due to the higher average amount of loans advanced to customers during the year ended 31 December 2016.