Central Bank of China

PRESS RELEASE Release Date: December 4, 2002




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Overview of offshore banking units (October 2002)

At the end of October, 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$48.482 billion at the end of October, 2002; decreased by US$7.039 billion or 12.68%compared with the same month of the previous year. Domestic bank OBUs accounted for US$33.822 billion or 70%of these combined assets, and foreign bank OBUs accounted for US$14.660 billion or 30%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 67%of total liabilities. Of these, due to related offices accounted for 45%of total liabilities, deposits by financial institutions situated locally for 13%, 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 28%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 64%, followed by America with 25%, Europe with 9%and other areas with 2%.

The loans outstanding of all OBUs at the end of October, 2002, amounted to US$15.249 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$7.963 billion, followed by short-term loans extended to oversea debtors with US$4.367 billion and loans extended to local debtors with US$2.919 billion. The export banking business volume of all OBUs in October was US$3.269 billion. Of this amount, export collection plus export remittance accounted for US$2.122 billion and export negotiation for US$1.147 billion.

The foreign exchange trading turnover of all OBUs in October was US$4.045 billion. Of this amount, spot transactions accounted for US$3.060 billion, followed by foreign exchange swaps with US$0.760 billion and outright forwards with US$0.225 billion.

The total trading turnover of the other new products of all OBUs in October was US$3.994 billion. Of this amount, options accounted for US$2.478 billion, followed by financial futures with US$0.608 billion, foreign currency forward rate agreements with US$0.53 billion, and foreign currency interest rate swaps with US$0.351 billion, margin account tradings with US$0.027 billion.