Holding in Company

HSBC Hldgs PLC
18 October 2000


LETTER TO:   COMPANY ANNOUNCEMENTS OFFICE

Section 198 - Companies Act 1985

The Company was notified today by the Hong Kong Monetary Authority (for and on 
behalf of the Financial Secretary of Hong Kong as Controller of the Exchange
fund of the Hong Kong Special Administrative Region) that, as at 16 October 
2000, the Hong Kong Special Administrative Region Government ('HKSAR
Government') had an interest (for the account of the Exchange Fund) in
478,769,418 ordinary shams of US$0.50 each in HSBC Holdings plc, representing
5.17% of the ordinary shares in  issue.  The registered holder of the shares is
HKSCC Nominees Limited.

In addition, the HKSAR Government holds (for the account of the Exchange Fund)
units in the Tracker Fund of Hong Kong ('TraHK') with the intention of meeting
its obligations to distribute loyalty bonus units to eligible investors under 
the terms of the Loyalty Bonus Scheme outlined in the prospectus for TraHK. As a
holder of units in TraHK, the HKSAR Government has an undivided interest in all
of the shares of HSBC Holdings plc held in TraHK's portfolio.  As at close of
business (Hong Kong time) on 16 October 2000, to the best of the HKSAR
Government's knowledge, information and belief, TraHK's portfolio held
72,508,352 ordinary shares in HSBC Holdings plc, representing 0.78% of the
ordinary shares in issue.  The HKSAR Government has no ability to exercise any 
voting rights in respect of the HSBC Holdings plc shares held in TraHK's 
portfolio.  The HKSAR Government believe that the registered holder of the HSBC
Holdings plc shares held by TraHK is HKSCC Nominees Limited.

A copy of the letter of notification is below.

As a consequence of the transactions, the HKSAR Government's interest in
the ordinary shares of HSBC Holdings plc has fallen from 6.98% to 5.95%.

LETTER FROM:  HSBC HOLDINGS PLC



LETTER TO:  HSBC HOLDINGS PLC

Notification of Shareholding Interest

The Hong Kong Monetary Authority (for and on behalf of the Financial Secretary
of Hong Kong as Controller of the Exchange Fund of the Hong Kong Special
Administrative Region) hereby notifies you that, as at 16 October 2000, the 
Hong Kong Special Administrative Region Government (the principal address of
which is Central Government Offices, Lower Albert Road, Central, Hong Kong) had
an interest (for the account of the Exchange Fund) in 478,769,418 shares of 
US$0.50 each in the ordinary share capital of your Company.  The registered 
holder of the above is HKSCC Nominees Limited.

As the beneficial owner of the shares referred to above the Hong Kong Special
Administrative Region Government has the right to call for delivery of any or
all of these shares from the registered holders.

In addition, the Hong Kong Special Administrative Region Government holds (for
the account of the Exchange Fund) units in the Tracker Fund of Hong Kong
('TraHK')  with the intention of meeting its obligations to distribute loyalty
bonus units to eligible investors under the terms of the Loyalty Bonus Scheme
outlined in the prospectus for TraHK. As a holder of units in TraHK, the Hong
Kong Special  Administrative Region Government has an undivided interest in all
of the  shares of HSBC Holdings plc held in TraHK's portfolio. As at close of 
business (Hong Kong time) on 16 October 2000, to the best of our knowledge,
information and belief, TraHK's portfolio held 72,508,352 ordinary shares in
HSBC Holdings plc.  The Hong Kong Special Administrative Region Government has
no ability to exercise any voting rights in respect of the HSBC Holdings plc
shares held in TraHK's portfolio. We believe that the registered holder of the
HSBC Holdings plc shares held by TraHK is HKSCC Nominees Limited.


LETTER FROM:  HONG KONG MONETARY AUTHORITY