Hang Seng Life Limited

HSBC Holdings PLC
22 June 2007


                             HANG SENG LIFE LIMITED

HSBC Insurance (Asia Pacific) Holdings Limited has agreed to sell its 50 per
cent interest in Hang Seng Life Limited to Hang Seng Insurance Company Limited
for a consideration of HK$2.4 billion (approximately US$308 million). This will
make Hang Seng Life a wholly owned subsidiary of Hang Seng Insurance, itself a
wholly owned subsidiary of Hang Seng Bank Limited.

Hang Seng Life provides life insurance services to customers in Hong Kong,
including life insurance policies linked to investment products and retirement
scheme management. 

David Fried, regional head of insurance, Asia Pacific, at HSBC Insurance (Asia
Pacific) Holdings Limited, said: "This change will provide greater flexibility
for each organisation to pursue its own strategy and growth plans in insurance.
We view this transaction as mutually beneficial for the Hang Seng group as well
as for HSBC. We enjoy an excellent relationship with Hang Seng Insurance and
will continue that relationship with the company, and with Hang Seng Life, as
they grow their business in the life insurance market."

HSBC Insurance (Asia Pacific) is a wholly owned subsidiary of The Hongkong and
Shanghai Banking Corporation Limited, which also owns 62.142 per cent of Hang
Seng Bank. HSBC Insurance is a leading insurance provider in Hong Kong,
operating life, non-life and retirement services businesses through a
comprehensive range of insurance, investment, health and retirement services.

The transaction is subject to conditions being met and relevant approvals being
obtained.

Notes to editors

1. HSBC Insurance (Asia Pacific) Holdings Limited
HSBC Insurance (Asia Pacific) Holdings Limited is the parent company of four
underwriting companies, collectively known as HSBC Insurance: HSBC Insurance
(Asia) Limited; HSBC Life (International) Limited; HSBC Insurance (Singapore)
Pte Limited; and HSBC Amanah Takaful (Malaysia) Sdn Bhd (49 per cent held). HSBC
Insurance offers customers the security, confidence and convenience of doing
business with one financial services organisation. It has offices in the Hong
Kong Special Administrative Region (SAR), the Macau SAR, Singapore and Malaysia.
In mainland China, it has representative offices in Beijing, Shanghai and
Guangzhou. HSBC Insurance (Asia Pacific)'s total assets stood at HK$91 billion
at the end of December 2006.

2. 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 10,000 offices in 82
countries and territories and assets of US$1,861 billion at 31 December 2006, is
one of the world's largest banking and financial services organisations.

3. Hang Seng Insurance Company
Hang Seng Insurance Company Limited is a wholly-owned subsidiary of Hang Seng
Bank. It offers a full range of general insurance products including accident,
travel, motor, employees compensation, fire and marine insurance. The total
assets of the company amounted to HK$1,242.7 million at 31 December 2006.

4. Hang Seng Bank Limited
Founded in 1933, Hang Seng Bank operates around 150 branches and automated
banking centres and 13 business banking centres in Hong Kong. Its wholly owned
subsidiary, Hang Seng Bank (China) Limited, established on 28 May 2007, operates
a mainland China network of 16 outlets in Beijing, Shanghai, Guangzhou,
Dongguan, Shenzhen, Fuzhou and Nanjing. Hang Seng Bank also maintains a branch
in Shenzhen for foreign currency wholesale business, a branch in Macau, and
representative offices in Xiamen and Taipei. Hang Seng Bank reported a profit
attributable to shareholders of HK$12.04 billion in 2006 and has consolidated
assets of HK$669.1 billion.





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