Central Bank of China

PRESS RELEASE Release Date: February 6, 2003




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Overview of offshore banking units (December 2002)

At the end of December, 2002, there were 72 offshore banking units(OBUs)in operation. Of these, 42 belonged to domestic banks and 30 belonged to foreign banks. The combined assets of all OBUs amounted to US$50.318 billion at the end of December, 2002; decreased by US$0.588 billion or 1.16%compared with the same month of the previous year. Domestic bank OBUs accounted for US$36 billion or 72%of these combined assets, and foreign bank OBUs accounted for US$14.318 billion or 28%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 66%of total liabilities. Of these, due to related offices accounted for 48%of total liabilities, deposits by financial institutions situated locally for 12%, those by financial institutions located overseas for 4%and inter-OBU deposits for 2%. The other sources of funds included deposits by non-financial institutions accounting for 29%of total liabilities and other liabilities plus the equity of head office for 5%. In terms of the areas of origin, the main source of funds was Asia that accounted for 70%, followed by America with 19%, Europe with 9%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, 18%was deposited overseas, 3%with other domestic financial institutions and 2%with domestic OBUs. The other uses of funds included loans accounting for 30%of total assets, security investments for 12%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 December, 2002, amounted to US$15.004 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$7.73 billion, followed by short-term loans extended to oversea debtors with US$4.376 billion and loans extended to local debtors with US$2.898 billion. The export banking business volume of all OBUs in December was US$4.777 billion. Of this amount, export collection plus export remittance accounted for US$3.634 billion and export negotiation for US$1.143 billion.

The foreign exchange trading turnover of all OBUs in December was US$4.194 billion. Of this amount, spot transactions accounted for US$3.106 billion, followed by foreign exchange swaps with US$0.847 billion and outright forwards with US$0.241billion.

The total trading turnover of the other new products of all OBUs in December was US$2.713 billion. Of this amount, options accounted for US$2.189 billion, followed by foreign currency forward rate agreements with US$0.25 billion,foreign currency interest rate swaps with US$0.2 billion, financial futures with US$0.042 billion, and margin account tradings with US$0.032 billion.