First Global Online Banking & Investment Service

HSBC Hldgs PLC
18 April 2000


      HSBC AND MERRILL LYNCH TO CREATE NEW COMPANY
             FORMING THE FIRST GLOBAL ONLINE
              BANKING & INVESTMENT SERVICE


      Customers offered unmatched web-based access
  to the combined services of two of the most respected
              global financial institutions


LONDON, NEW YORK and HONG KONG, April 18 - HSBC Holdings
plc and Merrill Lynch are joining forces with a
groundbreaking 50:50 partnership to create the first
global online banking and investment services company.

The new company will serve individual customers across
the world except in the United States, providing the
industry's most comprehensive and innovative range of
online banking and brokerage services for consumers who
prefer to make informed investment decisions for themselves.

HSBC and Merrill Lynch together will provide up to US$1
billion in start-up capital. The new company will be co-
branded 'Merrill Lynch HSBC' and its formal name will be
announced shortly. It will be headquartered in London and
will be launched later this year in the UK, followed by
Australia, Canada, Germany, Hong Kong SAR and Japan, with
other parts of the world to follow.

The new company's interim Chief Executive will be Edward
Goldberg, currently Merrill Lynch's Executive Vice
President of Operations Services. Mr Goldberg has been
with Merrill Lynch for 39 years and has extensive
experience in operations, systems, technology and the
private client business. The Chief Operating Officer will
be appointed from HSBC and will be announced shortly.

'We couldn't be more excited to be working together,'
said Sir John Bond, HSBC Group Chairman, and David
Komansky, Chairman and Chief Executive of Merrill Lynch.
'This revolutionary new online business combines the
strengths of our firms - financial expertise, innovative
products and services, research content, technology
platforms, geographic reach and strong brands - to create
the model for client service in the 21st century. By
combining resources, our two companies are able to serve
customers in more markets, more quickly and more
effectively than either one could on its own.'

The new company strategically combines Merrill Lynch's
worldwide investment capabilities and its award winning
research team with HSBC's global presence, client
relationships and processing capabilities.

Sir John Bond added: 'When we announced our results for
1999 we said that we believed e-commerce will change the
fabric of how business is done in financial services. We
also said it's time to go to market. This initiative
shows our determination to use the internet to build new
businesses in the rapidly expanding global market for
personal investments. The new company will have a
transforming effect on the rate at which HSBC's e-
business strategy can be implemented. It is a major step
forward for our wealth management strategy.

'By joining with Merrill Lynch, one of the world's pre-
eminent brands in financial management, we will
accelerate our ability to deliver a range of high quality
investment and banking services to this burgeoning
market. Working together we can draw on our combined
resources, both human and financial, to expand these
services globally.'

Mr Komansky said: 'By leveraging the recent success of
Merrill Lynch Direct in the US and by forming this
partnership with HSBC we will accelerate dramatically the
global roll out of an online business for affluent
individual investors. This unique venture is the first
online offering combining world class personal banking
and investment services. Each company's product and
service offerings fit well, as do our geographic
strengths. With HSBC's international reach and extensive
presence in many of the world's emerging markets, as well
as among the more affluent communities in Europe, the
winner in this combination is unquestionably the
customer.

'At a stroke, the new company makes Merrill Lynch and
HSBC global players in e-commerce. In fact, key measures
indicate continued robust growth in online usage around
the world. Coupled with the desire of global customers to
seek out sound and reliable financial institutions,
there's never been a better time for our two companies to
re-invent the manner in which quality banking and
investment services are delivered.'

As they take more control of their finances, people will
want information, product choice, and access to
international markets. Across Europe, Asia-Pacific, Japan
and Latin America, it is estimated that the number of
households who are 'on the net' and are active investors
will grow more than four-fold in the next decade to 50
million.

At the core of the new company will be a deposit account
through which customers will be able to invest in a wide
range of products including stocks, bonds, mutual funds
and unit trusts, and tax efficient products appropriate
to each local market. They will also have access to a
wide range of market information. Through the same
account, customers will earn a high rate of return on
their cash and be able to access it via cheque, charge
card, wire transfer or automated teller machines. Over
time, the service will be extended to include a range of
online banking products such as bill payment facilities,
mortgages and credit cards.

Customers will have access to a physical network of
offices in key locations and round the clock telephone
services. Dedicated staff will be available to provide
client service and support.


Analysts' Conference (London)
An analysts' briefing will be held today at 10.30 at
HSBC's headquarters, 10 Lower Thames Street, EC3R 6AE.
Sir John Bond, HSBC Group Chairman will present in
London, joined by senior executives from Merrill Lynch
and HSBC in the US and Hong Kong by satellite.

Press Conference (London)
A press briefing will be held today at 12.00 at HSBC's
headquarters, 10 Lower Thames Street, EC3R 6AE.
Presentations will be made by Sir John Bond, HSBC Group
Chairman, and David Komansky, Chairman and Chief
Executive of Merrill Lynch (by satellite from the US).
Executives in Hong Kong will also join by satellite.

Photographers and TV Crews
A photocall featuring Sir John Bond in London and David
Komansky in the US will be held at 11.45 in HSBC's London
headquarters 10 Lower Thames Street, EC3R 6AE. TV crews
and cameras are welcome to join the London press
conference at 12.00 at the same address.


Notes to editors:

Headquartered in London, HSBC is one of the largest
financial services organisations in the world, with
assets of US$569 billion at 31 December 1999. Serving 23
million customers, HSBC's international network comprises
more than 5,000 offices in 80 countries and territories
in the Asia-Pacific region, Europe, the Americas, the
Middle East and Africa. Further information on HSBC is
available at www.hsbc.com.

Merrill Lynch is one of the world's leading financial
management and advisory companies with offices in 43
countries and total client assets exceeding US$1.8
trillion. As an investment bank, it is the top global
underwriter and market maker of debt and equity
securities and a leading strategic advisor to
corporations, governments, institutions, and individuals
worldwide. Through its asset management group, Merrill
Lynch is one of the world's largest asset managers with
US$568 billion under management. Further information
about Merrill Lynch is available at www.ml.com. 

The foregoing statements may include forward-looking
information subject to risks, uncertainties and other
factors that could materially affect actual results.
These are described in Merrill Lynch's 1999 Annual Report
on Form 10-K, and in the 1998 Annual Report on Form 20-F
of HSBC Holdings plc, which are available at the SEC's
website, www.sec.gov.