Central Bank of China
PRESS RELEASE Release Date: May 7, 2004




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Overview of offshore banking units (March 2004)
At the end of March, 2004, there were 70 offshore banking units(OBUs)in operation. Of these, 41 belonged to domestic banks and 29 belonged to foreign banks. The combined assets of all OBUs amounted to US$66.484 billion at the end of March, 2004; increased by US$12.383 billion or 22.89%compared with the same month of the previous year. Domestic bank OBUs accounted for US$46.684 billion or 70%of these combined assets, and foreign bank OBUs accounted for US$19.800 billion or 30%of the total.

Based on balance sheet analysis, the OBUs' main sources of funds were due to related offices and deposits by financial institutions, which together accounted for 65%of total liabilities. Of these, due to related offices accounted for 43%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 25%of total liabilities, and other liabilities plus the equity of head office for 10%. In terms of the area of origin, Asia accounted for 70%, followed by America with 18%, Europe with 9%, and other areas with 3%.

The main uses of funds were due from related offices and deposits with financial institutions which together accounted for 53%of total assets. A further breakdown shows 38%was due from related offices, 7%was deposited overseas, 4%with domestic OBUs and 4%with other domestic financial institutions. The other uses of funds included loans, accounting for 25%of total assets, security investments for 12%, and other assets for 10%. Asia was the main destination for funds, accounting for 68%, followed by America with 18%, Europe with 11%, and other areas with 3%.

The total value of all outstanding loans made by OBUs at the end of March, 2004, amounted to US$16.844 billion, of which 82%was extended to oversea debtors, and 18%to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$7.815 billion, followed by short-term loans extended to oversea debtors with US$5.954 billion, and loans extended to local debtors with US$3.075 billion.

The volume of export related banking business of all OBUs in March was US$7.322 billion. Of this amount, export collection plus export remittance accounted for US$5.769 billion, and export negotiation for US$1.553 billion. The volume of import related banking business of all OBUs was US$5.139 billion.

The turnover of foreign exchange trading by all OBUs in March was US$9.854 billion. Of this amount, spot transactions accounted for US$6.473 billion, followed by foreign exchange swaps with US$1.790 billion, and outright forwards with US$1.591 billion.

The turnover of trading other derivative products by all OBUs in March was US$5.176 billion. Of this amount, options accounted for US$3.735 billion, followed by financial futures with US$0.718 billion, foreign currency interest rate swaps with US$0.614 billion, foreign currency forward rate agreements with US$0.040 billion, credit derivatives with US$0.035 billion and margin account tradings with US$0.034 billion.