Central Bank of China

PRESS RELEASE Release Date: September 9, 2002




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Overview of offshore banking units (July 2002)

At the end of July, 2002, there were 70 offshore banking units(OBUs)in operation. Of these, 40 belonged to domestic banks and 30 belonged to foreign banks. The combined assets of all OBUs amounted to US$53.743 billion at the end of July, 2002; decreased by US$1.145 billion or 2.09%compared with the same month of the previous year. Domestic bank OBUs accounted for US$37.809 billion or 70%of these combined assets, and foreign bank OBUs accounted for US$15.934 billion or 30%of the total.

Based on the balance sheet analysis, the OBU's main sources of funds were due to related offices and deposits by financial institutions that accounted for 72%of total liabilities. Of these, due to related offices accounted for 50%of total liabilities, deposits by financial institutions situated locally for 13%, those by financial institutions located overseas for 5%and inter-OBU deposits for 4%. The other sources of funds included deposits by non-financial institutions accounting for 24%of total liabilities and other liabilities plus the equity of head office for 4%. In terms of the areas of origin, the main source of funds was Asia that accounted for 75%, followed by America with 16%, Europe with 7%and other areas with 2%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 58%of total assets, of which 32%was due from related offices, 20%was deposited overseas, 4%with domestic OBUs and 2%with other domestic financial institutions. The other uses of funds included loans accounting for 29%of total assets, security investments for 10%and other assets for 3%. 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 July, 2002, amounted to US$15.638 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$8.233 billion, followed by short-term loans extended to oversea debtors with US$4.446 billion and loans extended to local debtors with US$2.959 billion. The export banking business volume of all OBUs in July was US$3.323 billion. Of this amount, export collection plus export remittance accounted for US$2.223 billion and export negotiation for US$1.1 billion.

The foreign exchange trading turnover of all OBUs in July was US$3.991 billion. Of this amount, spot transactions accounted for US$3.054 billion, followed by foreign exchange swaps with US$0.678 billion and outright forwards with US$0.259 billion.

The total trading turnover of the other new products of all OBUs in July was US$2.892 billion. Of this amount, options accounted for US$1.975 billion, followed by foreign currency interest rate swaps with US$0.519 billion, financial futures with US$0.298 billion, and foreign currency forward rate agreements with US$0.08 billion, margin account tradings with US$0.02 billion.