Central Bank of China

PRESS RELEASE Release Date: August 8, 2003



Overview of offshore banking units (June 2003)

At the end of June, 2003, there were 71 offshore banking units(OBUs)in operation. Of these, 42 belonged to domestic banks and 29 belonged to foreign banks. The combined assets of all OBUs amounted to US$55.250 billion at the end of June, 2003; increased by US$4.106 billion or 8.03%compared with the same month of the previous year. Domestic bank OBUs accounted for US$37.673 billion or 68%of these combined assets, and foreign bank OBUs accounted for US$17.577 billion or 32%of the total.

Based on the balance sheet analysis, the OBUs' main sources of funds were due to related offices and deposits by financial institutions that accounted for 67%of total liabilities. Of these, due to related offices accounted for 49%of total liabilities, deposits by financial institutions situated locally for 11%, those by financial institutions located overseas for 4%and inter-OBU deposits for 3%. The other sources of funds included deposits by non-financial institutions accounting for 28%of total liabilities and other liabilities plus the equity of head office for 5%. In terms of the areas of origin, the main source of funds was Asia that accounted for 67%, followed by America with 22%, Europe with 8%and other areas with 3%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 56%of total assets, of which 37%was due from related offices, 12%was deposited overseas, 4%with other domestic financial institutions and 3%with domestic OBUs. The other uses of funds included loans accounting for 28%of total assets, security investments for 12%and other assets for 4%. Asia was the main destination of funds accounting for 66%, followed by America with 22%, Europe with 10%and other areas with 2%.

The loans outstanding of all OBUs at the end of June, 2003, amounted to US$15.280 billion, of which 81%was extended to oversea debtors, and 19%to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$7.619 billion, followed by short-term loans extended to oversea debtors with US$4.709 billion and loans extended to local debtors with US$2.952 billion. The export banking business volume of all OBUs in June was US$5.446 billion. Of this amount, export collection plus export remittance accounted for US$4.201 billion and export negotiation for US$1.245 billion.

The foreign exchange trading turnover of all OBUs in June was US$4.939 billion. Of this amount, spot transactions accounted for US$3.720 billion, followed by foreign exchange swaps with US$0.754 billion and outright forwards with US$0.465 billion.

The total trading turnover of the other new products of all OBUs in June was US$4.333 billion. Of this amount, options accounted for US$2.970 billion, followed by foreign currency interest rate swaps with US$0.638 billion, financial futures with US$0.451 billion, margin account tradings with US$0.224 billion , foreign currency forward rate agreements with US$0.050 billion .