HSBC ups stake in Sparkice

HSBC Holdings PLC
18 July 2002



                        HSBC INCREASES STAKE IN SPARKICE

HSBC Holdings plc has invested an additional US$5 million in Sparkice Inc., the
Beijing-based online trade facilitator, taking its interest from 5 per cent to
10 per cent.

Through its online services, Sparkice allows businesses to source and buy
consumer products from China-based manufacturers. The investment from HSBC will
be directed towards further developing the online trade finance, payments and
marine cargo insurance services available on the company's B2B website.

Edward Zeng, Chairman and CEO of Sparkice Inc., said: "We appreciate HSBC's
continued involvement in our business. With China's entry to the World Trade
Organization and the rapidly growing global competitiveness of China's
manufacturing industry, I believe that Sparkice has an excellent opportunity to
become the leading, global online transaction hub."

Sir John Bond, Group Chairman of HSBC Holdings plc, added: "Since our initial
investment last year, we have been impressed with the substantial developments
made by Sparkice. In addition to the rapid global roll-out of its service, the
company has grown its supplier database from 2,000 last year to more than 10,000
today. Sparkice has also made headway with the introduction of new online
sourcing and trade finance applications and processes."



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