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



Overview of offshore banking units (October 2004)
At the end of October 2004, there were 70 offshore banking units (OBUs) in operation. Of these, 42 belonged to domestic banks and 28 belonged to foreign banks. The combined assets of all OBUs amounted to US$66.898 billion at the end of October 2004, increasing by US$8.701 billion or 14.95% compared with the same month of the previous year. Domestic bank OBUs accounted for US$45.296 billion or 68% of these combined assets, and foreign bank OBUs accounted for US$21.602 billion or 32% 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 63% of total liabilities. Of these, due to related offices accounted for 48% of total liabilities, deposits by financial institutions situated locally for 7%, those by financial institutions located overseas for 4%, and inter-OBU deposits for 4%. The other sources of funds included deposits by non-financial institutions, accounting for 27% of total liabilities, and other liabilities plus the equity of head office for 10%. In terms of the area of origin, Asia accounted for 66%, followed by America with 20%, Europe with 10%, 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 38% was due from related offices, 9% 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 10%, and other assets for 10%. Asia was the main destination for funds, accounting for 63%, followed by America with 24%, Europe with 10%, and other areas with 3%.

The total value of all outstanding loans made by OBUs at the end of October 2004, amounted to US$18.250 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$8.640 billion, followed by short-term loans extended to oversea debtors with US$6.739 billion, and loans extended to local debtors with US$2.871 billion.

The volume of export related banking business of all OBUs in October was US$7.132 billion. Of this amount, export collection plus export remittance accounted for US$5.644 billion, and export negotiation for US$1.488 billion. The volume of import related banking business of all OBUs was US$5.946 billion.

The turnover of foreign exchange trading by all OBUs in October was US$12.440 billion. Of this amount, spot transactions accounted for US$8.049 billion, followed by outright forwards with US$2.501 billion, and foreign exchange swaps with US$1.890 billion.

The turnover of trading other derivative products by all OBUs in October was US$5.919 billion. Of this amount, options accounted for US$4.292 billion, followed by financial futures with US$1.344 billion, foreign currency interest rate swaps with US$0.244 billion, margin account tradings with US$0.032 billion and credit derivatives with US$0.007 billion.















Note: The next dissemination will be made at 16:20 p.m. on January 7, 2005.