Central Bank of China

PRESS RELEASE Release Date: November 7, 2002




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Overview of offshore banking units (September 2002)

At the end of September, 2002, there were 71 offshore banking units(OBUs)in operation. Of these, 41 belonged to domestic banks and 30 belonged to foreign banks. The combined assets of all OBUs' amounted to US$48.943 billion at the end of September, 2002; decreased by US$6.779 billion or 12.16%compared with the same month of the previous year. Domestic bank OBUs accounted for US$34.361 billion or 70%of these combined assets, and foreign bank OBUs accounted for US$14.582 billion or 30%of the total.

Based on the balance sheet analysis, the OBUs' main sources of funds were due to related offices and deposits by financial institutions that accounted for 69%of total liabilities. Of these, due to related offices accounted for 46%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 4%. 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 54%of total assets, of which 31%was due from related offices, 16%was deposited overseas, 4%with domestic OBUs and 3%with other domestic financial institutions. The other uses of funds included loans accounting for 31%of total assets, security investments for 11%and other assets for 4%. Asia was the main destination of funds accounting for 64%, followed by America with 24%, Europe with 10%and other areas with 2%.

The loans outstanding of all OBUs at the end of September, 2002, amounted to US$15.393 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$7.933 billion, followed by short-term loans extended to oversea debtors with US$4.530 billion and loans extended to local debtors with US$2.930 billion. The export banking business volume of all OBUs in September was US$3.354 billion. Of this amount, export collection plus export remittance accounted for US$2.301 billion and export negotiation for US$1.053 billion.

The foreign exchange trading turnover of all OBUs in September was US$3.335 billion. Of this amount, spot transactions accounted for US$2.617 billion, followed by foreign exchange swaps with US$0.573 billion and outright forwards with US$0.145 billion.

The total trading turnover of the other new products of all OBUs in September was US$2.742 billion. Of this amount, options accounted for US$1.764 billion, followed by financial futures with US$0.587 billion, foreign currency interest rate swaps with US$0.207 billion, and foreign currency forward rate agreements with US$0.17 billion, margin account tradings with US$0.014 billion.