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



Overview of offshore banking units (April 2004)
At the end of April, 2004, there were 70 offshore banking units（OBUs）in operation. Of these, 41 belonged to domestic banks and 29 belonged to foreign banks. The combined assets of all OBUs amounted to US$68.872 billion at the end of April, 2004, increasing by US$15.838 billion or 29.86﹪compared with the same month of the previous year. Domestic bank OBUs accounted for US$47.330 billion or 69﹪of these combined assets, and foreign bank OBUs accounted for US$21.542 billion or 31﹪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 65﹪of total liabilities. Of these, due to related offices accounted for 44﹪of total liabilities, deposits by financial institutions situated locally for 12%, those by financial institutions located overseas for 6%, and inter-OBU deposits for 3%. The other sources of funds included deposits by non-financial institutions, accounting for 24﹪of total liabilities, and other liabilities plus the equity of head office for 11%. In terms of the area of origin, Asia accounted for 67%, followed by America with 18%, Europe with 12%, and other areas with 3%.

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 39﹪was due from related offices, 6﹪was deposited overseas, 5﹪with domestic OBUs and 3﹪with other domestic financial institutions. The other uses of funds included loans, accounting for 25﹪of total assets, security investments for 11%, and other assets for 11%. Asia was the main destination for funds, accounting for 70%, followed by America with 17%, Europe with 10%, and other areas with 3%.

The total value of all outstanding loans made by OBUs at the end of April, 2004, amounted to US$17.211 billion, of which 82﹪was extended to oversea debtors, and 18﹪to local debtors. Of this amount, long-term loans extended to oversea debtors accounted for US$7.877 billion, followed by short-term loans extended to oversea debtors with US$6.228 billion, and loans extended to local debtors with US$3.106 billion.

The volume of export related banking business of all OBUs in April was US$6.860 billion. Of this amount, export collection plus export remittance accounted for US$5.343 billion, and export negotiation for US$1.517 billion. The volume of import related banking business of all OBUs was US$4.929 billion.

The turnover of foreign exchange trading by all OBUs in April was US$10.604 billion. Of this amount, spot transactions accounted for US$6.433 billion, followed by foreign exchange swaps with US$2.110 billion, and outright forwards with US$2.061 billion.

The turnover of trading other derivative products by all OBUs in April was US$4.900 billion. Of this amount, options accounted for US$3.652 billion, followed by financial futures with US$0.708 billion, foreign currency interest rate swaps with US$0.658 billion, foreign currency forward rate agreements with US$0.030 billion, margin account tradings with US$0.013 billion and credit derivatives with US$0.011 billion.





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