Issue of Subordinated Notes

HSBC Holdings PLC
25 August 2006

                      HSBC ISSUANCE OF SUBORDINATED NOTES

On 23 August 2006, HSBC Holdings plc issued US$400,000,000 of 6.5% Subordinated
Notes due 2036 (the "New Notes"). The New Notes form a part of the same series
as, and are fungible with, the outstanding US$900,000,000 6.5% Subordinated
Notes due 2036 issued by HSBC Holdings plc on 3 May 2006 (the "Existing Notes"
and, together with the New Notes, the "Notes").

The aggregate principal amount of Notes of this series now outstanding is
US$1,300,000,000. The Existing Notes are listed on the New York Stock Exchange.
Application has been made to list the New Notes issued on 23 August 2006 on the
New York Stock Exchange.




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