Central Bank of China
PRESS RELEASE Release Date: August 11, 2004



Overview of offshore banking units (June 2004)
At the end of June, 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$71.520 billion at the end of June, 2004, increasing by US$17.244 billion or 31.77% compared with the same month of the previous year. Domestic bank OBUs accounted for US$48.146 billion or 67% of these combined assets, and foreign bank OBUs accounted for US$23.374 billion or 33% 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 66% of total liabilities. Of these, due to related offices accounted for 47% of total liabilities, deposits by financial institutions situated locally for 11%, 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 11%. In terms of the area of origin, Asia accounted for 66%, followed by America with 17%, Europe with 14%, and other areas with 3%.

The main uses of funds were due from related offices and deposits with financial institutions which together accounted for 54% of total assets. A further breakdown shows 43% was due from related offices, 6% was deposited overseas, 3% with domestic OBUs and 2% with other domestic financial institutions. The other uses of funds included loans, accounting for 26% of total assets, security investments for 10%, and other assets for 10%. Asia was the main destination for funds, accounting for 65%, followed by America with 19%, Europe with 13%, and other areas with 3%.

The total value of all outstanding loans made by OBUs at the end of June, 2004, amounted to US$18.385 billion, of which 83% was extended to oversea debtors, and 17% to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$8.410 billion, followed by short-term loans extended to oversea debtors with US$6.843 billion, and loans extended to local debtors with US$3.132 billion.

The volume of export related banking business of all OBUs in June was US$7.359 billion. Of this amount, export collection plus export remittance accounted for US$5.816 billion, and export negotiation for US$1.543 billion. The volume of import related banking business of all OBUs was US$6.212 billion.

The turnover of foreign exchange trading by all OBUs in June was US$8.550 billion. Of this amount, spot transactions accounted for US$5.483 billion, followed by foreign exchange swaps with US$1.990 billion, and outright forwards with US$1.077 billion.

The turnover of trading other derivative products by all OBUs in June was US$4.986 billion. Of this amount, options accounted for US$3.652 billion, followed by financial futures with US$0.718 billion, foreign currency interest rate swaps with US$0.487 billion, foreign currency forward rate agreements with US$0.090 billion, margin account tradings with US$0.026 billion and credit derivatives with US$0.013 billion.





Note: The next dissemination will be made at 16:20 p.m. on September 7, 2004.