Statement

HSBC Holdings PLC
15 March 2005




                                   STATEMENT

HSBC has confirmed it is in discussions to sell 100 per cent of its Australian
asset management business, HSBC Asset Management (Australia) Limited, to
Challenger Financial Services Group 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 Asset Management Services
HSBC Asset Management Services (AMS) is the name used to describe the core and
associated specialist asset management companies of the HSBC Group. AMS
companies provide investment management solutions to institutional, corporate
and financial intermediary clients worldwide. Companies within AMS are HSBC
Asset Management, the core global business, plus the companies dedicated to
specialist areas. These include Sinopia for quantitative, structured and
guaranteed investment solutions, HSBC Specialist Investments for property and
infrastructure investments, HSBC Alternative Investments for single-manager
alternative investment strategies, and HSBC Multimanager, offering independent
fund selection and fund of fund management services. AMS companies have funds
under management of US$222 billion at 31 December 2004.

2. HSBC Asset Management (Australia) Limited
HSBC Asset Management (Australia) Limited has over A$3.5 billion under
management and offices in Melbourne, Sydney and Brisbane. It has been providing
investment advice to clients since 1981, offering a range of products including
unit trusts, wholesale funds, personal superannuation and allocated pensions.

3. The HSBC Group
The HSBC Group is one of the largest banking and financial services
organisations in the world. The Group has over 9,800 offices in 77 countries and
territories in Europe, the Asia-Pacific region, the Americas, the Middle East
and Africa, serves over 110 million customers and has assets of US$1,277 billion
at 31 December 2004.



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