Central Bank of China

PRESS RELEASE Release Date: June 30,2001




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Overview of offshore banking units in May 2001

At the end of May, 2001, there were 69 offshore banking units(OBUs)in operation. Of these, 38 belonged to domestic banks and 31 belonged to foreign banks. The combined assets of all OBUs amounted to US$50.808 billion at the end of May, 2001; increased by US$8.455 billion or 19.96%compared with the same month of the previous year. Domestic bank OBUs accounted for US$35.534 billion or 70%of these combined assets, and foreign bank OBUs accounted for US$15.274 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 73%of total liabilities. Of these, due to related offices accounted for 57%of total liabilities, deposits by financial institutions situated locally for 8%, those by financial institutions located overseas for 5%and inter-OBU deposits for 3%. The other sources of funds included deposits by non-financial institutions accounting for 23%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 78%, followed by America with 17%, Europe with 4%and other areas with 1%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 57%of total assets, of which 28%was due from related offices, 24%was deposited overseas, 2%with other domestic financial institutions and 3%with domestic OBUs. The other uses of funds included loans accounting for 32%of total assets, security investments for 8%and other assets for 3%. Asia was the main destination of funds accounting for 63%, followed by America with 24%, Europe with 11%and other areas with 2%.

The loans outstanding of all OBUs at the end of May, 2001, amounted to US$16.174 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$8.991 billion, followed by short-term loans extended to oversea debtors with US$4.013 billion and loans extended to local debtors with US$3.170 billion. The export banking business volume of all OBUs in May was US$2.407 billion. Of this amount, export collection plus export remittance accounted for US$1.612 billion and export negotiation for US$0.795 billion.

The foreign exchange trading turnover of all OBUs in May was US$2.839 billion. Of this amount, spot transactions accounted for US$2.045 billion, followed by foreign exchange swaps with US$0.731 billion and outright forwards with US$0.063 billion