Re: Chailease Credit Services

HSBC Holdings PLC
17 January 2007



                   HSBC TO ACQUIRE CHAILEASE CREDIT SERVICES
                  TO BECOME LARGEST TWO-FACTOR EXPORT BUSINESS
                                   IN TAIWAN

The Hongkong and Shanghai Banking Corporation Limited has entered into an
agreement to acquire 100 per cent of Chailease Credit Services Co., Ltd., one of
Taiwan's leading factoring companies.

Taiwan is the world's second largest factoring market, a testament to the
island's prominent position in Asian trade. Chailease Credit Services, the sixth
largest factor in Taiwan, is the factoring arm of Chailease Finance Company. It
has a gross asset value of US$99.6 million (about NT$3,264 million) at the end
of 2005 and focuses mainly on two-factor export trade, handling transactions in
which both buyer and seller use factoring.

HSBC currently has a small factoring operation in Taiwan. This acquisition will
increase considerably HSBC's share of a large market and will add substantially
to its increasingly popular cross-border services in the region.

Michael Smith, President and Chief Executive Officer of The Hongkong and 
Shanghai Banking Corporation Limited, said: "The acquisition of the Chailease
Credit Services factoring business is a good fit with our global commercial 
banking strategy. It will turn HSBC into the largest two-factor export business
in Taiwan, the world's second largest factoring market by turnover. It will also
provide a solid base for us to expand our receivables finance business in the 
Greater China region through economies of scale, experienced staff and 
integrated systems."

The acquisition, which is subject to regulatory approval and other conditions,
is expected to be completed in the first quarter of 2007.

1. HSBC in Taiwan
HSBC's presence in Taiwan dates back to 1885 when The Hongkong and Shanghai
Banking Corporation Limited appointed an agent in Tamsui. A full service branch
was established in Taipei in 1984. The bank now has a network of eight branches
island-wide and employs some 2,300 staff. In September, the bank launched HSBC
Direct, a direct banking service for the Taiwan consumer market that offers
consistently higher rates of returns.

2. Chailease Credit Services
Chailease Credit Services Co., Ltd. (CCS) is a wholly owned subsidiary of
Chailease Finance Co. Ltd. (CFC). CCS commenced its factoring operation in 1987
and was spun off from CFC in 2000. CCS provides factoring services and
trade-related consultancy to corporates in Taiwan. It has a gross asset value of
US$99.6 million (about NT$3,264 million) at the end of 2005 and 45 staff.

3. The HSBC Group
The Hongkong and Shanghai Banking Corporation Limited is the founding and a
principal member of the HSBC Group which, with around 9,500 offices in 81
countries and territories and assets of US$1,738 billion at 30 June 2006, is one
of the world's largest banking and financial services organisations.





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