Central Bank of China

PRESS RELEASE Release Date: April 1, 2002




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Overview of offshore banking units (February 2002)

At the end of February, 2002, there were 67 offshore banking units(OBUs)in operation. Of these, 37 belonged to domestic banks and 30 belonged to foreign banks. The combined assets of all OBUs amounted to US$51.540 billion at the end of February, 2002; increased by US$2.504 billion or 5.11%compared with the same month of the previous year. Domestic bank OBUs accounted for US$37.479 billion or 73%of these combined assets, and foreign bank OBUs accounted for US$14.061 billion or 27%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 71%of total liabilities. Of these, due to related offices accounted for 54%of total liabilities, deposits by financial institutions situated locally for 10%, those by financial institutions located overseas for 3%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 4%. In terms of the areas of origin, the main source of funds was Asia that accounted for 77%, followed by America with 17%, Europe with 4%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 25%was due from related offices, 27%was deposited overseas, 2%with other domestic financial institutions and 4%with domestic OBUs. The other uses of funds included loans accounting for 30%of total assets, security investments for 9%and other assets for 3%. Asia was the main destination of funds accounting for 62%, followed by America with 25%, Europe with 11%and other areas with 2%.

The loans outstanding of all OBUs at the end of February, 2002, amounted to US$15.170 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$8.548 billion, followed by short-term loans extended to oversea debtors with US$3.749 billion and loans extended to local debtors with US$2.873 billion. The export banking business volume of all OBUs in February was US$2.238 billion. Of this amount, export collection plus export remittance accounted for US$1.583 billion and export negotiation for US$0.655 billion.

The foreign exchange trading turnover of all OBUs in February was US$1.928 billion. Of this amount, spot transactions accounted for US$1.468 billion, followed by foreign exchange swaps with US$0.373 billion and outright forwards with US$0.087 billion.

The total trading turnover of the other new products of all OBUs in February was US$1.607 billion. Of this amount, options accounted for US$1.406 billion, followed by foreign currency interest rate swaps with US$0.086 billion, foreign currency forward rate agreements with US$0.070 billion, margin account tradings with US$0.042 billion, and financial futures with US$0.003 billion.