HSBC Acquisition

HSBC Hldgs PLC
16 May 2001



                   HSBC AGREES TO ACQUIRE
        CHINA SECURITIES INVESTMENT TRUST CORPORATION

  HSBC Asset Management (Europe) Limited has entered into an
agreement with China Development Industrial Bank Inc. to
acquire a controlling interest in China Securities
Investment Trust Corporation.

  China Securities Investment Trust is Taiwan's leading asset
management company with approximately US$3 billion (NT$96.3
billion) of assets under management and about 88,000 high
net-worth retail and institutional clients at the end of
March 2001.

  Under the terms of the transaction, HSBC is acquiring China
Development Industrial Bank's 52.87 per cent interest in
China Securities Investment Trust for approximately US$103
million (NT$3.3 billion) in cash. HSBC is also offering to
acquire the outstanding shares of the asset management
company held by the remaining minority interests on similar
terms. The agreement with China Development Industrial Bank
values China Securities Investment Trust at approximately
US$200 million (NT$6.5 billion). The consideration involved
will be met by internal cash resources at the HSBC Group.
Completion is subject to due diligence, obtaining regulatory
approvals and certain conditions under the terms of the
agreement being met.

  HSBC Holdings plc Group Chairman Sir John Bond said: 'This
is an exciting acquisition representing a valuable addition
to our asset management group of companies and demonstrates
our commitment to expanding our asset management business in
Asia. The acquisition also complements the HSBC Group's
growing wealth management business in Taiwan.  The long-term
prospects for Taiwan's economy, asset management industry
and personal banking business are bright.'

  HSBC Asset Management is being advised by HSBC Investment
Banking and Markets. JP Morgan Chase is advising China 
Development Industrial Bank.


Notes to editors

1. China Securities Investment Trust Corporation

China Securities Investment Trust Corporation was
established in 1986 and is the largest asset management
company in Taiwan with approximately US$3 billion of assets
under management and about 88,000 high net-worth retail and
institutional clients at the end of March 2001. China
Securities Investment Trust offers a total of 17 funds,
comprising domestic and international equities funds, fixed
income and balanced funds.

2. China Development Industrial Bank

China Development Industrial Bank is a financial services
company initially established as a trust and investment
company investing in growth companies in Taiwan. Nowadays,
it has expanded its businesses to include direct investment,
corporate lending, corporate finance and advisory, asset
management and securities trading.

3. HSBC Holdings plc

Headquartered in London, HSBC Holdings plc, with assets of
US$674 billion as at 31 December 2000, is one of the largest
banking and financial services organisations in the world.
The HSBC Group's international network comprises some 6,500
offices in 79 countries and territories in Europe, the Asia-
Pacific region, the Americas, the Middle East and Africa.

With listings on the London, Hong Kong, New York and Paris
stock exchanges, shares in HSBC Holdings plc are held by
around 190,000 shareholders in some 100 countries and
territories. As at 31 January 2001, HSBC Group subsidiaries
had about US$295 billion of assets under management.

4. HSBC Asset Management

HSBC Asset Management is the global investment advisory and
asset management business of the HSBC Group. HSBC Asset
Management has offices in each of the world's key financial
centres including London, Paris, Vancouver, New York, Sao
Paulo, Buenos Aires, Hong Kong SAR, Melbourne, Tokyo and
Singapore. As at 31 March 2001, HSBC Asset Management had
US$133.6 billion of assets under management.