Central Bank of China

PRESS RELEASE Release Date: January 7, 2003




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Overview of offshore banking units (November 2002)

At the end of November, 2002, there were 72 offshore banking units(OBUs)in operation. Of these, 42 belonged to domestic banks and 30 belonged to foreign banks. The combined assets of all OBUs amounted to US$49.561 billion at the end of November, 2002; decreased by US$4.510 billion or 8.34%compared with the same month of the previous year. Domestic bank OBUs accounted for US$35.114 billion or 71%of these combined assets, and foreign bank OBUs accounted for US$14.447 billion or 29%of the total.

Based on the balance sheet analysis, the OBUs' main sources of funds were due to related offices and deposits by financial institutions that accounted for 66%of total liabilities. Of these, due to related offices accounted for 46%of total liabilities, deposits by financial institutions situated locally for 11%, those by financial institutions located overseas for 5%and inter-OBU deposits for 4%. The other sources of funds included deposits by non-financial institutions accounting for 29%of total liabilities and other liabilities plus the equity of head office for 5%. In terms of the areas of origin, the main source of funds was Asia that accounted for 71%, followed by America with 19%, Europe with 8%and other areas with 2%.

The main uses of funds were due from related offices and deposits with financial institutions that accounted for 53%of total assets, of which 31%was due from related offices, 15%was deposited overseas, 4%with domestic OBUs and 3%with other domestic financial institutions. The other uses of funds included loans accounting for 31%of total assets, security investments for 12%and other assets for 4%. Asia was the main destination of funds accounting for 66%, followed by America with 24%, Europe with 8%and other areas with 2%.

The loans outstanding of all OBUs at the end of November, 2002, amounted to US$15.215 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$8.006 billion, followed by short-term loans extended to oversea debtors with US$4.275 billion and loans extended to local debtors with US$2.934 billion. The export banking business volume of all OBUs in November was US$3.930 billion. Of this amount, export collection plus export remittance accounted for US$2.902 billion and export negotiation for US$1.028 billion.

The foreign exchange trading turnover of all OBUs in November was US$3.503 billion. Of this amount, spot transactions accounted for US$2.444 billion, followed by foreign exchange swaps with US$0.785 billion and outright forwards with US$0.274 billion.

The total trading turnover of the other new products of all OBUs in November was US$2.352 billion. Of this amount, options accounted for US$1.981 billion, followed by foreign currency interest rate swaps with US$0.204 billion, financial futures with US$0.149 billion, and margin account tradings with US$0.018 billion.