Central Bank of China

PRESS RELEASE Release Date: November 29, 2001




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Overview of offshore banking units (October 2001)

At the end of October, 2001, there were 68 offshore banking units(OBUs)in operation. Of these, 38 belonged to domestic banks and 30 belonged to foreign banks. The combined assets of all OBUs amounted to US$55.521 billion at the end of October, 2001; increased by US$8.714 billion or 18.62%compared with the same month of the previous year. Domestic bank OBUs accounted for US$39.766 billion or 72%of these combined assets, and foreign bank OBUs accounted for US$15.755 billion or 28%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 75%of total liabilities. Of these, due to related offices accounted for 60%of total liabilities, deposits by financial institutions situated locally for 9%, those by financial institutions located overseas for 2%and inter-OBU deposits for 4%. The other sources of funds included deposits by non-financial institutions accounting for 22%of total liabilities and other liabilities plus the equity of head office for 3%. In terms of the areas of origin, the main source of funds was Asia that accounted for 79%, followed by America with 15%, Europe with 5%and other areas with 1%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 62%of total assets, of which 28%was due from related offices, 28%was deposited overseas, 2%with other domestic financial institutions and 4%with domestic OBUs. The other uses of funds included loans accounting for 28%of total assets, security investments for 7%and other assets for 3%. Asia was the main destination of funds accounting for 63%, followed by America with 23%, Europe with 12%and other areas with 2%.

The loans outstanding of all OBUs at the end of October, 2001, amounted to US$15.553 billion, of which 80%was extended to oversea debtors, and 20%to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$8.694 billion, followed by short-term loans extended to oversea debtors with US$3.750 billion and loans extended to local debtors with US$3.109 billion. The export banking business volume of all OBUs in October was US$2.640 billion. Of this amount, export collection plus export remittance accounted for US$1.895 billion and export negotiation for US$0.745 billion.

The foreign exchange trading turnover of all OBUs in October was US$2.399 billion. Of this amount, spot transactions accounted for US$1.735 billion, followed by foreign exchange swaps with US$0.619 billion and outright forwards with US$0.045 billion.

The total trading turnover of the other new products of all OBUs in October was US$1.622 billion. Of this amount, options accounted for US$1.240 billion, followed by foreign currency forward rate agreements with US$0.210 billion, foreign currency interest rate swaps with US$0.086 billion, margin account tradings with US$0.035 billion, commodity price swaps with US$0.031 billion, and financial futures with US$0.020 billion.