Scrip Dividend Alternative

HSBC Hldgs PLC
21 August 2000


                       HSBC HOLDINGS PLC
                 FIRST INTERIM DIVIDEND FOR 2000
                   SCRIP DIVIDEND ALTERNATIVE


On 31 July 2000, the Directors of HSBC Holdings plc declared a 
first interim dividend for 2000 of US$0.15 per ordinary share 
payable on 5 October 2000 to shareholders on the Register of
Shareholders on 18 August 2000. The dividend is payable in cash in
US dollars, sterling or Hong Kong dollars, or a combination of these
currencies, with a scrip dividend alternative. The market value for
the issue of new shares under the scrip dividend alternative is:

                  US$14.0173 for each new share.

The market value is the US dollar equivalent of the average of the
middle market quotations for the ordinary shares on the London
Stock Exchange as derived from the Daily Official List for the
five business days commencing on 14 August 2000 (the day on which
the shares were first quoted ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars will
be converted from US dollars at the forward exchange rates quoted
by HSBC Bank plc in London at 11am on 25 September 2000.

Particulars of the dividend arrangements will be mailed to
shareholders on or about 25 August 2000, and elections must be 
received by the Registrars by 18 September 2000.