Dividend - Scrip Alternative

HSBC Holdings PLC
25 August 2004




                               HSBC HOLDINGS PLC

                        SECOND INTERIM DIVIDEND FOR 2004

                           SCRIP DIVIDEND ALTERNATIVE

On 2 August 2004, the Directors of HSBC Holdings plc declared a second interim
dividend for 2004 of US$0.13 per ordinary share payable on 6 October 2004 to
shareholders on the Register on 20 August 2004. The dividend is payable in cash
in United States dollars, sterling or Hong Kong dollars, or a combination of
these currencies, with a scrip dividend alternative. The "Market Value" for the
issue of new shares under the scrip dividend alternative is:

                         US$15.0141 for each new share

The "Market Value" is the United States dollar equivalent of £8.307, being the
average of the middle market quotations for the ordinary shares on the London
Stock Exchange as derived from the Daily Official List for the five business
days beginning on 18 August 2004 (the day on which the shares were first quoted
ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars on 6 October 2004
will be converted from United States dollars at the forward exchange rates
quoted by HSBC Bank plc in London at or about 11.00 am on 27 September 2004.
These exchange rates will be announced to the London, Hong Kong, New York, Paris
and Bermuda stock exchanges.

Particulars of the dividend arrangements will be mailed to shareholders on or
about 1 September 2004, and elections must be received by the Registrars by 22
September 2004.





R G Barber

Group Company Secretary

HSBC Holdings plc



25 August 2004


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