HSBC Investment in Ping An

HSBC Holdings PLC
08 October 2002

                   HSBC SIGNS AGREEMENT TO INVEST IN CHINA'S

                           PING AN INSURANCE COMPANY

HSBC Insurance Holdings Ltd, a wholly-owned subsidiary of the HSBC Group,
entered into an agreement on 8 October 2002 to subscribe for new common shares
of Ping An Insurance Company of China, Ltd. ('Ping An'), equivalent to 10 per
cent of Ping An's enlarged issued share capital, for a consideration of US$600
million. The agreement is subject to regulatory and other approvals.

As part of the transaction, HSBC will also enter into separate agreements to
cooperate with and to provide technical assistance and services to Ping An. This
includes the establishment of a broad range of strategic co-operations and
alliances in personal financial services as and when PRC regulations permit.

HSBC Group Chairman, Sir John Bond, said: "We are delighted with the opportunity
to invest in and establish a strategic partnership with Ping An Insurance.
China's insurance and wealth management businesses are growing rapidly and the
long-term prospects are very favourable."

Ping An's Chairman and CEO, Peter Ma, commented: "We are very pleased with
HSBC's investment in Ping An and welcome them as our strategic partner.
Together, Ping An and HSBC are uniquely positioned to capitalise on the growth
of the financial services sector in China across many different products. Both
of our organisations stand for the highest quality of service to our clients
and, with the assistance of our shareholders, we look forward to continuing to
grow Ping An into the leading financial services provider in our markets."

Notes to editors

1. Ping An Insurance Company of China Limited

Established in Shenzhen in 1988, Ping An Insurance has the second largest life
insurance operation in the People's Republic of China (PRC) with 28.7 per cent
market share and a life premium income of US$4.8 billion in 2001. It also has
the third largest property and casualty insurance operation in PRC with around
9.8 per cent market share and premium income of US$776 million in 2001. Ping An
Insurance also engages in investment trust and securities businesses. Ping An
has over 20 million policy holders, around 21,500 employees and audited profits
of US$351.3 million for 2001 under International Financial Reporting Standards.

2. The HSBC Group

The HSBC Group is one of the largest banking and financial services
organisations in the world. The Group has some 7,000 offices in 81 countries and
territories in Europe, the Asia-Pacific region, the Americas, the Middle East
and Africa, serves 31 million customers and has assets of over US$746 billion at
30 June 2002.

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. The shares are traded on the New York Stock Exchange
in the form of American Depository Receipts.

3. HSBC Group Insurance

The HSBC Group, through its insurance subsidiaries, provides insurance products
and services to both its retail and commercial banking customers. These
insurance products and services include life, protection and investment
business, property and casualty, insurance broking and consultancy, insurance
agency and alternative risk financing services. In 2001, insurance premiums
transacted worldwide by the HSBC Group amounted to US$7.7 billion.

4. Investment Banking division of The Hongkong and Shanghai Banking Corporation
Limited

The Investment Banking division of The Hongkong and Shanghai Banking Corporation
Limited acted as financial adviser to this transaction for HSBC.

5. Goldman Sachs and Morgan Stanley

Goldman Sachs and Morgan Stanley acted as financial advisers to Ping An.




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