Central Bank of China

PRESS RELEASE Release Date: October 7, 2002




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Overview of offshore banking units (August 2002)

At the end of August, 2002, there were 70 offshore banking units(OBUs)in operation. Of these, 40 belonged to domestic banks and 30 belonged to foreign banks. The combined assets of all OBUs amounted to US$47.346 billion at the end of August, 2002; decreased by US$7.834 billion or 14.20%compared with the same month of the previous year. Domestic bank OBUs accounted for US$33.703 billion or 71%of these combined assets, and foreign bank OBUs accounted for US$13.643 billion or 29%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 68%of total liabilities. Of these, due to related offices accounted for 45%of total liabilities, deposits by financial institutions situated locally for 14%, 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 27%of total liabilities and other liabilities plus the equity of head office for 5%. In terms of the areas of origin, the main source of funds was Asia that accounted for 72%, followed by America with 18%, Europe with 8%and other areas with 2%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 51%of total assets, of which 29%was due from related offices, 16%was deposited overseas, 4%with domestic OBUs and 2%with other domestic financial institutions. The other uses of funds included loans accounting for 33%of total assets, security investments for 12%and other assets for 4%. Asia was the main destination of funds accounting for 62%, followed by America with 25%, Europe with 10%and other areas with 3%.

The loans outstanding of all OBUs at the end of August, 2002, amounted to US$15.466 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$8.043 billion, followed by short-term loans extended to oversea debtors with US$4.438 billion and loans extended to local debtors with US$2.985 billion. The export banking business volume of all OBUs in August was US$3.45 billion. Of this amount, export collection plus export remittance accounted for US$2.335 billion and export negotiation for US$1.115 billion.

The foreign exchange trading turnover of all OBUs in August was US$3.533 billion. Of this amount, spot transactions accounted for US$2.504 billion, followed by foreign exchange swaps with US$0.883 billion and outright forwards with US$0.146 billion.

The total trading turnover of the other new products of all OBUs in August was US$2.903 billion. Of this amount, options accounted for US$1.753 billion, followed by financial futures with US$0.412 billion, foreign currency interest rate swaps with US$0.366 billion, and foreign currency forward rate agreements with US$0.36 billion, margin account tradings with US$0.012 billion.