HSBC comp acq of Bk of Comms

HSBC Holdings PLC
18 August 2004


                  HSBC COMPLETES ACQUISITION OF 19.9 PER CENT
                       OF BANK OF COMMUNICATIONS LIMITED

The Hongkong and Shanghai Banking Corporation Limited, a wholly-owned subsidiary
of HSBC Holdings plc, has completed its acquisition of a 19.9 per cent interest
in Bank of Communications Limited. The conditions to which the transaction was
subject, including the regulatory and other approvals, have been met.

This transaction represents the largest single equity investment in a mainland
China bank by a foreign bank.

Bank of Communications is China's fifth largest bank with total assets of
US$111.9 billion at 31 December 2003. It is one of only 15 commercial banks with
a national banking licence, giving it the ability to operate without
geographical restrictions. Headquartered in Shanghai, the bank has around 2,700
branches and outlets across 137 of the wealthiest cities in mainland China.

Notes to editors

1. Bank of Communications Limited
Founded in 1908 and headquartered in Shanghai, Bank of Communications Limited
was transformed into the first and largest joint stock commercial bank in China
in 1987. The bank has around 2,700 branches and outlets throughout mainland
China, branches in Hong Kong, New York, Tokyo and Singapore and overseas offices
in London and Frankfurt. It is currently the fifth largest bank in China with
total assets of US$111.9 billion at 31 December 2003.

2. The HSBC Group
The Hongkong and Shanghai Banking Corporation Limited is the founding and a
principal member of the HSBC Group which, with about 10,000 offices in 76
countries and territories and assets of US$1,154 billion at 30 June 2004, is one
of the world's largest banking and financial services organisations.

3. The Hongkong and Shanghai Banking Corporation Limited's financial adviser
The Investment Banking division of The Hongkong and Shanghai Banking Corporation
Limited acted as financial adviser to this transaction for HSBC.

4. Bank of Communications financial adviser
Goldman Sachs (Asia) L.L.C. acted as financial adviser to this transaction for
Bank of Communications Limited.

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