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




--------------------------------------------------------------------------------

Overview of offshore banking units (May 2004)
At the end of May, 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$69.179 billion at the end of May, 2004, increasing by US$15.177 billion or 28.10% compared with the same month of the previous year. Domestic bank OBUs accounted for US$46.772 billion or 68% of these combined assets, and foreign bank OBUs accounted for US$22.407 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 64% of total liabilities. Of these, due to related offices accounted for 44% of total liabilities, deposits by financial institutions situated locally for 11%, 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 12%. In terms of the area of origin, Asia accounted for 66%, followed by America with 18%, Europe with 13%, and other areas with 3%.

The main uses of funds were due from related offices and deposits with financial institutions which together accounted for 52% of total assets. A further breakdown shows 41% was due from related offices, 5% was deposited overseas, 3% with other domestic financial institutions and 3% with domestic OBUs. The other uses of funds included loans, accounting for 26% 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 May, 2004, amounted to US$17.651 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$8.008 billion, followed by short-term loans extended to oversea debtors with US$6.522 billion, and loans extended to local debtors with US$3.121 billion.

The volume of export related banking business of all OBUs in May was US$6.575 billion. Of this amount, export collection plus export remittance accounted for US$5.190 billion, and export negotiation for US$1.385 billion. The volume of import related banking business of all OBUs was US$4.652 billion.

The turnover of foreign exchange trading by all OBUs in May was US$8.888 billion. Of this amount, spot transactions accounted for US$5.635 billion, followed by foreign exchange swaps with US$1.835 billion, and outright forwards with US$1.418 billion.

The turnover of trading other derivative products by all OBUs in May was US$5.438 billion. Of this amount, options accounted for US$3.444 billion, followed by financial futures with US$1.256 billion, foreign currency interest rate swaps with US$0.677 billion, margin account tradings with US$0.022 billion, foreign currency forward rate agreements with US$0.020 billion and credit derivatives with US$0.019 billion.





Note: The next dissemination will be made at 16:20 p.m. on August 9, 2004.