Central Bank of China

PRESS RELEASE Release Date: August 6, 2002



Overview of offshore banking units (June 2002)

At the end of June, 2002, there were 69 offshore banking units(OBUs)in operation. Of these, 39 belonged to domestic banks and 30 belonged to foreign banks. The combined assets of all OBUs amounted to US$51.144 billion at the end of June, 2002; decreased by US$2.079 billion or 3.91%compared with the same month of the previous year. Domestic bank OBUs accounted for US$36.895 billion or 72%of these combined assets, and foreign bank OBUs accounted for US$14.249 billion or 28%of the total.

Based on the balance sheet analysis, the OBU's main sources of funds were due to related offices and deposits by financial institutions that accounted for 71%of total liabilities. Of these, due to related offices accounted for 53%of total liabilities, deposits by financial institutions situated locally for 11%, those by financial institutions located overseas for 3%and inter-OBU deposits for 4%. The other sources of funds included deposits by non-financial institutions accounting for 25%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 75%, followed by America with 17%, Europe with 6%and other areas with 2%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 57%of total assets, of which 28%was due from related offices, 22%was deposited overseas, 3%with other domestic financial institutions and 4%with domestic OBUs. The other uses of funds included loans accounting for 30%of total assets, security investments for 10%and other assets for 3%. Asia was the main destination of funds accounting for 60%, followed by America with 25%, Europe with 12%and other areas with 3%.

The loans outstanding of all OBUs at the end of June, 2002, amounted to US$15.481 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$8.248 billion, followed by short-term loans extended to oversea debtors with US$4.382 billion and loans extended to local debtors with US$2.851 billion. The export banking business volume of all OBUs in June was US$3.218 billion. Of this amount, export collection plus export remittance accounted for US$2.375 billion and export negotiation for US$0.843 billion.

The foreign exchange trading turnover of all OBUs in June was US$3.057 billion. Of this amount, spot transactions accounted for US$2.290 billion, followed by foreign exchange swaps with US$0.543 billion and outright forwards with US$0.224 billion.

The total trading turnover of the other new products of all OBUs in June was US$2.443 billion. Of this amount, options accounted for US$1.689 billion, followed by foreign currency interest rate swaps with US$0.455 billion, financial futures with US$0.222 billion, and foreign currency forward rate agreements with US$0.04 billion, margin account tradings with US$0.037 billion.