Dividend - Scrip Alternative

HSBC Holdings PLC
25 May 2005



                               HSBC HOLDINGS PLC

                        FIRST INTERIM DIVIDEND FOR 2005

                           SCRIP DIVIDEND ALTERNATIVE

On 3 May 2005, the Directors of HSBC Holdings plc declared a first interim
dividend for 2005 of US$0.14 per ordinary share payable on 6 July 2005 to
shareholders on the Register on 20 May 2005. 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$15.8448 for each new share

The "Market Value" is the United States dollar equivalent of £8.656, 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 18 May 2005 (the day on which the shares were first quoted
ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars on 6 July 2005 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 27 June 2005. These exchange
rates will be announced to the London, Hong Kong, New York, Paris and Bermuda
stock exchanges.

Particulars of the dividend arrangements will be mailed to shareholders on or
about 1 June 2005, and elections must be received by the Registrars by 22 June
2005.



N S Black

Assistant Secretary

HSBC Holdings plc



25 May 2005


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