Central Bank of China

PRESS RELEASE Release Date: May 4, 2002




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Overview of offshore banking units (March 2002)

At the end of March, 2002, there were 68 offshore banking units(OBUs)in operation. Of these, 38 belonged to domestic banks and 30 belonged to foreign banks. The combined assets of all OBUs amounted to US$52.544 billion at the end of March, 2002; increased by US$3.830 billion or 7.86%compared with the same month of the previous year. Domestic bank OBUs accounted for US$38.311 billion or 73%of these combined assets, and foreign bank OBUs accounted for US$14.233 billion or 27%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 55%of total liabilities, deposits by financial institutions situated locally for 9%, 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 76%, followed by America with 17%, Europe with 5%and other areas with 2%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 59%of total assets, of which 25%was due from related offices, 28%was deposited overseas, 2%with other domestic financial institutions and 4%with domestic OBUs. The other uses of funds included loans accounting for 29%of total assets, security investments for 9%and other assets for 3%. Asia was the main destination of funds accounting for 61%, followed by America with 25%, Europe with 12%and other areas with 2%.

The loans outstanding of all OBUs at the end of March, 2002, amounted to US$15.330 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$8.495 billion, followed by short-term loans extended to oversea debtors with US$3.982 billion and loans extended to local debtors with US$2.853 billion. The export banking business volume of all OBUs in March was US$2.586 billion. Of this amount, export collection plus export remittance accounted for US$1.802 billion and export negotiation for US$0.784 billion.

The foreign exchange trading turnover of all OBUs in March was US$3.410 billion. Of this amount, spot transactions accounted for US$2.596 billion, followed by foreign exchange swaps with US$0.637 billion and outright forwards with US$0.177 billion.

The total trading turnover of the other new products of all OBUs in March was