The Central Bank of China
PRESS RELEASE Release Date: August 9, 2003




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Important Measures in July, 2003

In line with the policy of promoting the liberalization, internationalization, and development of the foreign exchange market, the Central Bank of China (CBC) announced the following measures in July 2003:

1. In order to promote the internationalization of the asset management business in our country and meet the requirements of investors, the CBC informed the Securities and Futures Commission, Ministry of Finance, on July 14, 2003 that securities investment trust enterprises will be allowed to apply for raising fund to invest abroad at their discretion, effective immediately.

2. Approved Taipei Bank to commence internet banking business involving foreign currencies.

3. Approved the following Authorized Banks to operate new foreign exchange derivatives business:

(1) Taishin International Bank :Foreign Currency Structured Products business composed of Foreign Currency Interest Rate Swaps, Foreign Currency Interest Rate Options and Foreign Currency Time Deposits.

(2) Fubon Commercial Bank: FCY Interest Rate Swaptions business, Foreign Currency Structured Products business composed of Foreign Currency Time Deposits and FCY Options.

(3) Jinsun International Bank:Foreign Currency Commodity Options business.

(4) SinoPac Bank: FCY Interest Rate Swpations business.

(5) International Bank of Taipei:FCY Interest Rate Options business, Structured Deposits business with principal protection composed of (1) NTD TDS and long of FCY Interest Rate Options or FCY Options or (2) FCY TDS and long of FCY Interest Rate Options.

(6) FuHwa Bank:FCY Interest Rate Options business.

(7) Mokoto Bank: FCY Cross Currency Swaps business.

(8) American Express, Taipei Branch :(1) FCY Equity Options (2) FCY Structured Products business composed of FCY TDS and FCY Equity Options (3)FCY FRA (4) FCY Interest Rate Swaptions (5) FCY Structured Products business composed of FCY TDS and FCY Interest Rate Swaps, FCY Interest Rate Options and FCY Interest Rate Swaptions.

(9) JPmorgan Chase Bank, Taipei Branch:Principal Guaranteed NTD Structured Deposit business with principal protection composed of NTD Time Deposit and NTD Interest Rate Swaps , NTD Interest Rate Swaptions, FCY Interest Rate Swaps and FCY Interest Rate Options.

(10)The Hongkong and Shanghai Banking Corp. Ltd., Taipei Branch:(1)FCY Interest Rate Swaptions (2) FCY Structured products business composed of NTD Interest Rate Swaps, NTD Interest Rate Options, NTD Interest Rate Swaptions , FCY Interest Rate Swaps, FCY Interest Rate Options and FCY Interest Rate Swaptions.

(11)Hwa Tai Bank commences the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

4. Authorized 1 branch of Taiwan Business Bank to operate foreign exchange business. In addition, 18 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of July, there were 1,061 authorized foreign exchange banks, including 995 domestic banks and 66 foreign banks.