HSBC in China Insurance JV

HSBC Holdings PLC
30 October 2003

                 HSBC IN MAINLAND CHINA INSURANCE JOINT VENTURE

HSBC Insurance Brokers Limited has entered into a joint venture agreement to
offer insurance broking and risk management services to domestic and
international clients in mainland China. This is the first foreign joint venture
in China to obtain an insurance broking licence allowing the company to offer
services to domestic customers.

HSBC, with its joint venture partners, will form Beijing HSBC Insurance Brokers
Limited and take a 24.9 per cent stake in the new company. Shanghai Hua Yu Asset
Management Limited and Beijing Zhong Ke Engineering Company will take a 50.1 per
cent and 25 per cent stake in the company respectively. Beijing HSBC Insurance
Brokers will be capitalised at RMB16 million (about US$1.9 million), of which
HSBC will inject US$498,000.

The new business is licensed to undertake insurance broking, claims handling,
reinsurance and risk management and risk consulting services. Based in Beijing,
the company plans to focus on brokering large commercial risks, reinsurance
business, international marine, aviation, transport and health care insurance to
foreign investment entities, such as multinationals investing and operating in
China. The company will also be able to offer services to domestic Chinese
companies investing or exporting outside of mainland China.

Mike Dixon, Chief Executive of HSBC Insurance Brokers, said: "As a joint venture
partner in a nationally licensed insurance broker in mainland China, we will be
able to apply our considerable managerial and technical expertise to offer
customers a professional, competitive service in an exciting, substantial and
growing market."

Notes to editors:

1. HSBC Insurance Brokers

HSBC Insurance Brokers is a major multinational risk management, insurance
broking and employees benefits organisation with over 2,000 staff processing
premiums in excess of £1.25 billion (US$2.1 billion). HSBC Insurance Brokers was
established in UK in 1917. It now has offices in 11 countries and territories
worldwide.

2. HSBC Holdings plc

With over 9,500 offices in 79 countries and territories and assets of US$983
billion at 30 June 2003, the HSBC Group is one of the world's largest banking
and financial services organisations.

3. Beijing Zhong Ke Engineering Company

Beijing Zhong Ke Engineering Company is an investment vehicle, which was
established in 2001 with a registered capital of RMB29 million.

4. Shanghai Hua Yu Asset Management

Shanghai Hua Yu Asset Management Company is an investment vehicle, which was
established in 2002 with a registered capital of RMB30 million.


                      This information is provided by RNS
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