Increased Stake - Techcombank

HSBC Holdings PLC
06 July 2007


                HSBC TO INCREASE STAKE IN VIETNAM'S TECHCOMBANK;
                    BUILDS ON ASIAN EMERGING MARKETS PLATFORM

HSBC has received approval from the State Bank of Vietnam to increase its stake
in Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) from 10
per cent to 15 per cent for a total consideration of US$33.7 million (VND539.4
billion). HSBC is the first foreign bank to receive approval for a 15 per cent
strategic investment in a domestic Vietnamese bank. The increased stake in
Techcombank reinforces HSBC's leading position in emerging markets.

In April, the Government of Vietnam passed a decree to allow foreign banks to
own 15 per cent of a Vietnamese commercial bank which may be increased to 20 per
cent subject to approval from the Vietnamese Government. In accordance with
these new regulations, HSBC intends to immediately subscribe for new shares in
Techcombank to increase its stake to 15 per cent. An application to the
government will subsequently be submitted for a second tranche of shares to take
its stake in the bank to 20 per cent.

Vietnam has a population of over 84 million. Its GDP has averaged over seven per
cent in recent years, GDP per capita has doubled over the last 10 years and
foreign direct investment grew by 55 per cent last year to a record high.

Vincent Cheng, Chairman of The Hongkong and Shanghai Banking Corporation
Limited, said: "Raising our investment in Techcombank will allow us to expand
our presence in one of Asia's fastest growing economies, and reflects our focus
on emerging markets. In addition to our increased shareholding, we plan to
extend the technical service assistance we provide to Techcombank, and both
parties intend to explore joint business opportunities. HSBC has committed
US$13.5 million to support the agreements on technical service assistance over a
five-year period."

Founded in 1993, Techcombank is one of the country's largest joint stock banks,
with assets totalling VND25,000 billion at 31 May 2007. Techcombank's 2,000
staff serve almost 200,000 personal and over 13,000 commercial customers through
a network of over 100 branches and transaction offices in 20 provinces and
cities across Vietnam.

Notes to editors:

1. HSBC in Vietnam
HSBC first opened an office in Saigon (now Ho Chi Minh City) in 1870. The branch
operated for over 100 years, until its closure in 1975. HSBC also opened an
agency of the bank at Haiphong in 1884 which was upgraded to a sub-office at the
beginning of the 1920s. This arrangement continued until the closure of the
agency in 1954. The bank was able to revive its strong links with Vietnam when
representative offices were opened in Ho Chi Minh City and Hanoi in 1992. The Ho
Chi Minh City representative office became a full service branch in 1995 and a
branch was opened in Hanoi in March 2005.

2. The HSBC Group
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 as at 31 December 2006,
is one of the world's largest banking and financial services organisations.




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