To Sell Stake in Ping An Bank

HSBC Holdings PLC
16 February 2007


                              HSBC SIGNS AGREEMENT
                       TO SELL ITS STAKE IN PING AN BANK

HSBC, which owns 19.9 per cent of Ping An Insurance (Group) Company of China
Limited (Ping An Group), has entered into an agreement to sell its 27 per cent
stake in Ping An Bank Limited to Shenzhen Commercial Bank Company Limited
(SZCB), which is an 89.36 per cent owned subsidiary of Ping An Group.

The transaction is part of Ping An Group's consolidation of its banking
businesses within SZCB. HSBC is supporting its Chinese partner in this
endeavour. The consideration is expected to be US$29.4 million (approximately
RMB228.7 million), subject to a review of Ping An Bank's audited net asset value
as at 31 December 2006.

Vincent Cheng, Chairman of The Hongkong and Shanghai Banking Corporation
Limited, said: "We will continue to invest in and expand our operations in China
as well as strengthening our relations with our strategic partners comprising
Ping An Group, Bank of Communications and Bank of Shanghai. These strategic
investments are a core component of our growth strategy in China. Additionally,
we are in the process of locally incorporating our China business to allow us to
further expand our network and range of services." 

Ping An Bank, previously named Fujian Asia Bank, was established in mainland
China in 1993 as a Sino-foreign equity joint venture bank. It had assets of
RMB1.1 billion (approximately US$143.7 million) at the end of December 2005. In
2003, Fujian Asia Bank was acquired by HSBC and China Ping An Trust &
Investment, a subsidiary of Ping An Group.

Ping An Bank is currently headquartered in Shanghai and has one branch in
Fujian. The bank offers a range of foreign currency services to local and
foreign customers, as well as renminbi-denominated services to corporate
customers and foreign individuals.

Completion of the transaction is subject to agreeing final terms and to
obtaining the necessary approvals.


1. The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding and a
principal member of the HSBC Group which, with around 9,500 offices in 81
countries and territories and assets of US$1,738 billion at 30 June 2006, is one
of the world's largest banking and financial services organisations.

2. Ping An Insurance (Group) Company of China Limited
China Ping An Trust & Investment, which holds 73 per cent of Ping An Bank, is a
99.881 per cent owned subsidiary of the Ping An Insurance Group. Established in
Shenzhen in 1988, Ping An Insurance (Group) Company of China Limited has the
second largest life insurance operation and the third largest property and
casualty insurance operation in mainland China as at June 2006. It has over 31
million life insurance customers, over 8 million property and casualty customers
and around 240,000 employees at June 2006. In December 2005, it had achieved a
total gross written premium and policy fees of RMB59 billion.

3. Shenzhen Commercial Bank Company Limited
Established in 1995, Shenzhen Commercial Bank is a local joint-stock commercial
bank with its head office in Shenzhen. The bank provides a wide-range of
services in both commercial and personal banking. At December 2005, it had total
assets of RMB69.9 billion and an extensive network in Shenzhen comprising 46
branches. Shenzhen Commercial Bank is currently 89.36 per cent owned by Ping An
Insurance (Group) Company of China Limited.






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