Central Bank of China

PRESS RELEASE Release Date: January 28, 2002




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Overview of offshore banking units (December 2001)

At the end of December, 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$50.906 billion at the end of December, 2001; increased by US$3.569 billion or 7.54%compared with the same month of the previous year. Domestic bank OBUs accounted for US$37.000 billion or 73%of these combined assets, and foreign bank OBUs accounted for US$13.906 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 72%of total liabilities. Of these, due to related offices accounted for 58%of total liabilities, deposits by financial institutions situated locally for 8%, 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 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 77%, followed by America with 16%, Europe with 5%and other areas with 2%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 59%of total assets, of which 26%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 8%and other assets for 3%. Asia was the main destination of funds accounting for 61%, followed by America with 26%, Europe with 11%and other areas with 2%.

The loans outstanding of all OBUs at the end of December, 2001, amounted to US$15.488 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$8.731 billion, followed by short-term loans extended to oversea debtors with US$3.772 billion and loans extended to local debtors with US$2.985 billion. The export banking business volume of all OBUs in December was US$2.545 billion. Of this amount, export collection plus export remittance accounted for US$1.859 billion and export negotiation for US$0.686 billion.

The foreign exchange trading turnover of all OBUs in December was US$2.411 billion. Of this amount, spot transactions accounted for US$1.866 billion, followed by foreign exchange swaps with US$0.442 billion and outright forwards with US$0.103 billion.

The total trading turnover of the other new products of all OBUs in December was US$1.458 billion. Of this amount, options accounted for US$1.186 billion, followed by foreign currency interest rate swaps with US$0.167 billion, margin account tradings with US$0.058 billion, foreign currency forward rate agreements with US$0.045 billion, and financial futures with US$0.002 billion.