Dividend - Scrip Alternative

HSBC Holdings PLC
01 December 2004





                               HSBC HOLDINGS PLC

                        THIRD INTERIM DIVIDEND FOR 2004

                           SCRIP DIVIDEND ALTERNATIVE

On 8 November 2004, the Directors of HSBC Holdings plc declared a third interim
dividend for 2004 of US$0.13 per ordinary share payable on 20 January 2005 to
shareholders on the Register on 26 November 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$16.9969 for each new share

The "Market Value" is the United States dollar equivalent of £8.934, 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 24 November 2004 (the day on which the shares were first
quoted ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars on 20 January 2005
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 10 January 2005. 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 7 December 2004, and elections must be received by the Registrars by 5
January 2005.





P A Stafford

Assistant Group Secretary

HSBC Holdings plc



1 December 2004


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