Statement

HSBC Holdings PLC
24 June 2004


                                   STATEMENT

The Hongkong and Shanghai Banking Corporation Limited has confirmed it is in
discussions to acquire 19.9 per cent of Bank of Communications Limited.

Completion of the transaction is subject to agreeing final terms and to
obtaining the necessary regulatory approvals.

A further announcement will be made as and when appropriate.



Notes to editors:

1. HSBC in mainland China

Established in Hong Kong and Shanghai in 1865, HSBC has had a continuous
presence in China for 140 years. Reflecting its long-term commitment to the
country, HSBC moved its China head office from Hong Kong to Shanghai in May
2000.

HSBC has the largest branch network among foreign banks in mainland China,
comprising nine branches in Beijing, Dalian, Guangzhou, Qingdao, Shanghai,
Shenzhen, Tianjin, Wuhan and Xiamen, two sub-branches in Puxi, Shanghai, and
representative offices in Chengdu and Chongqing.

2. The HSBC Group

The Hongkong and Shanghai Banking Corporation Limited is a wholly-owned
subsidiary of HSBC Holdings plc, and a member of the HSBC Group. Serving over
110 million customers worldwide, the HSBC Group has more than 9,500 offices in
79 countries and territories in Europe, the Asia-Pacific region, the Americas,
the Middle East and Africa. With assets of US$1,034 billion at 31 December 2003,
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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