Disposal

HSBC Holdings PLC
05 June 2006

HSBC SELLS AUSTRALIAN ONLINE STOCKBROKING BUSINESS TO E*TRADE

HSBC has entered into an agreement to sell its Australian online
stockbroking business, HSBC Stockbroking (Australia) Pty Limited, to
ETRADE Australia Limited (ASX: ETR, www.etrade.com.au) for a
consideration of approximately A$51 million (approximately US$38.5
million).

HSBC Stockbroking is a non-advisory, online trading and settlement
services business, covering equities, warrants and options, and also
provides online managed funds and international share trading in 14
overseas markets.

E*TRADE, the second largest online broker in Australia, provides an
award winning online trading service to retail investors including
equities, options and CFDs (contracts for difference). The company also
provides trade execution and settlement services to intermediary and
institutional clients.

Stuart Davis, Chief Executive Officer of HSBC Bank in Australia, said:
"We recently conducted a strategic review of our Australian stockbroking
business. We firmly believe that the online broking industry will
continue to consolidate and that the investment in technology required
to remain competitive is likely to increase significantly.

"While we have steadily increased our customer base over time, E*TRADE's
interest in acquiring the business and entering into an ongoing
strategic alliance presented us with an attractive offer. Their level of
commitment ensures our 40,000 customers will continue to have access to
a first class broking service.

"Our strategy for growth in Australia places a strong emphasis on making
full use of the HSBC Group's strengths and participating in market
opportunities where we have a strong comparative advantage. For our
retail banking customers, this includes our new consumer finance
initiative and, for our corporate customers, initiatives in areas such
as project finance, trade finance, debt capital markets and payments and
cash management." 

Notes to editors:
1. HSBC Holdings plc
HSBC Holdings plc is headquartered in the UK. The HSBC Group serves over
125 million customers worldwide from more than 9,500 offices in 76 countries
and territories in Europe, the Asia-Pacific region, the Americas, the
Middle East and Africa. With assets of US$1,502 billion at 31 December 2005, 
HSBC is one of the world's largest banking and financial services organisations.
HSBC is marketed worldwide as 'the world's local bank'.

Further information can be found at www.hsbc.com

2. HSBC in Australia
In Australia, the HSBC Group offers an extensive range of financial services 
through a network of 35 branches and offices. These services include personal 
and commercial financial services, trade finance, treasury and financial 
markets, financial planning and securities custody. Principal HSBC Group members
operating in Australia include HSBC Bank Australia Limited, HSBC Precious 
Metals (Australia) Limited and HSBC Bank plc.

Further information can be found at www.hsbc.com.au

3. E*TRADE
E*TRADE Australia offers independent investors the convenience and control 
of automated securities order placement, along with a suite of value-added 
products and services that can be personalised, including portfolio tracking, 
charting and quote applications, real-time company announcements, news and 
other information services. E*TRADE Australia does not provide investment 
advice to online retail customers.

Further information can be found at www.etrade.com.au




                      This information is provided by RNS
            The company news service from the London Stock Exchange