Central Bank of China
PRESS RELEASE Release Date: November 8, 2004



Overview of offshore banking units (September 2004)
At the end of September 2004, there were 69 offshore banking units (OBUs) in operation. Of these, 41 belonged to domestic banks and 28 belonged to foreign banks. The combined assets of all OBUs amounted to US$66.525 billion at the end of September 2004, increasing by US$8.795 billion or 15.23% compared with the same month of the previous year. Domestic bank OBUs accounted for US$44.229 billion or 66% of these combined assets, and foreign bank OBUs accounted for US$22.296 billion or 34% 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 63% of total liabilities. Of these, due to related offices accounted for 48% of total liabilities, deposits by financial institutions situated locally for 7%, 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 27% of total liabilities, and other liabilities plus the equity of head office for 10%. In terms of the area of origin, Asia accounted for 66%, followed by America with 20%, Europe with 10%, and other areas with 4%.

The main uses of funds were due from related offices and deposits with financial institutions which together accounted for 53% of total assets. A further breakdown shows 40% was due from related offices, 8% was deposited overseas, 3% with domestic OBUs and 2% with other domestic financial institutions. The other uses of funds included loans, accounting for 27% of total assets, security investments for 11%, and other assets for 9%. Asia was the main destination for funds, accounting for 66%, followed by America with 20%, Europe with 11%, and other areas with 3%.

The total value of all outstanding loans made by OBUs at the end of September 2004, amounted to US$18.044 billion, of which 84% was extended to oversea debtors, and 16% to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$8.469 billion, followed by short-term loans extended to oversea debtors with US$6.682 billion, and loans extended to local debtors with US$2.893 billion.

The volume of export related banking business of all OBUs in September was US$7.453 billion. Of this amount, export collection plus export remittance accounted for US$5.836 billion, and export negotiation for US$1.617 billion. The volume of import related banking business of all OBUs was US$5.287 billion.

The turnover of foreign exchange trading by all OBUs in September was US$8.625 billion. Of this amount, spot transactions accounted for US$5.330 billion, followed by outright forwards with US$1.915 billion, and foreign exchange swaps with US$1.380 billion.

The turnover of trading other derivative products by all OBUs in September was US$5.057 billion. Of this amount, options accounted for US$3.220 billion, followed by financial futures with US$1.183 billion, foreign currency interest rate swaps with US$0.421 billion, foreign currency forward rate agreements with US$0.180 billion, margin account tradings with US$0.037 billion and credit derivatives with US$0.016 billion.





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