The Central Bank of China

PRESS RELEASE Release Date: December 14, 2002




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Important Measures in October, 2002

In line with the policy of liberalization and internationalization, and for further development of foreign exchange business, the Central Bank of China (CBC) took the following measures in November, 2002:

1.To provide diversified foreign portfolio investment instruments, the Central Bank of China, in accordance with the " Type And Range Of Overseas Marketable Securities In the Portfolio Recommended by Securities Investment Consulting Agencies" amended by the Securities and Futures Commission, Ministry of Finance, added the following to the range of consigned overseas portfolio offered by financial institutions engaging in overseas investments of earmark trust funds on November 22, 2002:

(1) Exchange Traded Funds, and

(2) Depository Receipts.

Both of the above should be traded in the overseas exchange markets or the overseas over-the-counter markets.

2.Approved the following Authorized Banks to operate derivates business:

(1) JinSun International Bank operates NT Dollar Structured Deposits business which is composed of NT Dollar Time Deposits and Foreign Currency Equity Options.

(2) Mokoto Bank operates Foreign Currency Margin Trading business.

(3) Citibank N.A., Taipei Branch operates Foreign Currency Structured Loans business which is composed of Foreign Currency Lands and Foreign Currency Options.

(4) The Toronto-Dominion Bank, Taipei Branch operates NTD/FCY Options business, Foreign Currency Interest Rate Options business.

(5) Standard Chartered Bank, Taipei Branch operates Foreign Currency Swaption business.

(6) UFJ Bank Limited, Taipei Branch operates NTD/FCY Cross Currency Swaps business.

(7) Hsinchu Bank commences the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

3.Authorized 4 branches of Chinatrust Commercial Bank to operate foreign exchange business. In addition, 8 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of November, there were 1,032 authorized foreign exchange banks, including 966 domestic banks and 66 foreign banks.