Scrip dividend announcement

HSBC Holdings PLC
27 March 2002

                               HSBC HOLDINGS PLC

                        SECOND INTERIM DIVIDEND FOR 2001

                           SCRIP DIVIDEND ALTERNATIVE

On 4 March 2002, the Directors of HSBC Holdings plc declared a second interim
dividend for 2001 of US$0.29 per ordinary share payable on 7 May 2002 to
shareholders on the Register on 22 March 2002. 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$11.3968 for each new share

The "Market Value" is the United States dollar equivalent of £8.009, 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 20 March 2002 (the day on which the shares were first quoted
ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars on 7 May 2002 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 29 April 2002. These exchange
rates will be announced to the London, Hong Kong, New York and Paris stock
exchanges.

Particulars of the dividend arrangements will be mailed to shareholders on or
about 3 April 2002, and elections must be received by the Registrars by 24 April
2002.



R G Barber

Group Company Secretary

HSBC Holdings plc



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