Central Bank of China
PRESS RELEASE Release Date: October 7, 2004



Overview of offshore banking units (August 2004)
At the end of August, 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$67.241 billion at the end of August, 2004, increasing by US$11.492 billion or 20.61% compared with the same month of the previous year. Domestic bank OBUs accounted for US$45.383 billion or 67% of these combined assets, and foreign bank OBUs accounted for US$21.858 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 64% of total liabilities. Of these, due to related offices accounted for 46% of total liabilities, deposits by financial institutions situated locally for 8%, those by financial institutions located overseas for 6%, and inter-OBU deposits for 4%. The other sources of funds included deposits by non-financial institutions, accounting for 26% of total liabilities, and other liabilities plus the equity of head office for 10%. In terms of the area of origin, Asia accounted for 65%, followed by America with 19%, Europe with 12%, 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 41% was due from related offices, 6% was deposited overseas, 4% 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 68%, followed by America with 19%, Europe with 10%, and other areas with 3%.

The total value of all outstanding loans made by OBUs at the end of August, 2004, amounted to US$18.233 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$8.518 billion, followed by short-term loans extended to oversea debtors with US$6.752 billion, and loans extended to local debtors with US$2.963 billion.

The volume of export related banking business of all OBUs in August was US$7.170 billion. Of this amount, export collection plus export remittance accounted for US$5.611 billion, and export negotiation for US$1.559 billion. The volume of import related banking business of all OBUs was US$5.166 billion.

The turnover of foreign exchange trading by all OBUs in August was US$9.413 billion. Of this amount, spot transactions accounted for US$5.347 billion, followed by outright forwards with US$2.498 billion, and foreign exchange swaps with US$1.568 billion.

The turnover of trading other derivative products by all OBUs in August was US$4.675 billion. Of this amount, options accounted for US$3.088 billion, followed by financial futures with US$1.356 billion, foreign currency interest rate swaps with US$0.195 billion, margin account tradings with US$0.022 billion and credit derivatives with US$0.014 billion.





Note: The next dissemination will be made at 16:20 p.m. on November 8,