Scrip dividend alternative

HSBC Holdings PLC
29 November 2006



                               HSBC HOLDINGS PLC
                        THIRD INTERIM DIVIDEND FOR 2006
                           SCRIP DIVIDEND ALTERNATIVE

On 6 November 2006, the Directors of HSBC Holdings plc declared a third interim
dividend for 2006 of US$0.15 per ordinary share payable on 18 January 2007 to
shareholders on the Register on 24 November 2006. The dividend is payable in
cash in United States 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$18.7596 for each new share

The "Market Value" is the United States dollar equivalent of £9.65 being 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 beginning on 22 November 2006 (the day on which the shares were first
quoted ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars on 18 January 2007
will be converted from United States dollars at the forward exchange rates
quoted by HSBC Bank plc in London at or about 11.00 am on 8 January 2007. These
exchange rates will be announced to the London, Hong Kong, New York, Paris and
Bermuda stock exchanges.

Particulars of the dividend arrangements will be mailed to shareholders on or
about 5 December 2006, and elections must be received by the Registrars by 3
January 2007.

R G Barber
Group Company Secretary
HSBC Holdings plc
29 November 2006

Note to editors:

HSBC Holdings plc

HSBC Holdings plc serves over 125 million customers worldwide through some 9,500
offices in 76 countries and territories in Europe, the Asia-Pacific region, the
Americas, the Middle East and Africa. With assets of US$1,738 billion at 30 June
2006, HSBC is one of the world's largest banking and financial services
organisations. HSBC is marketed worldwide as 'the world's local bank'.



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