Holding in Company

HSBC Hldgs PLC
9 May 2001

Letter to Company Announcements Office

Section 198 - Companies Act 1985

The Company was notified today by the Hong Kong Monetary Authority (for and on
behalf of the Financial Secretary of Hong Kong as Controller of the Exchange
Fund of the Hong Kong Special Administrative Region) that, as at 4 May 2001, the
Hong Kong Special Administrative Region Government ('HKSAR Government') had an
interest (for the account of the Exchange Fund) in 374,358,891 ordinary shares
of US$0.50 each in HSBC Holdings plc, representing 4.01% of the ordinary shares
in issue.  The registered holder of the shares is HKSCC Nominees Limited.

In addition, the HKSAR Government holds (for the account of the Exchange Fund)
units in the Tracker Fund of Hong Kong ('TraHK') with the intention of meeting
its obligations to distribute loyalty bonus units to eligible investors under 
the terms of the Loyalty Bonus Scheme outlined in the prospectus for TraHK.  As 
a holder of units in TraHK, the HKSAR Government has an undivided interest in
all of the shares of HSBC Holdings plc held in TraHK's portfolio.  As at close 
of business (Hong Kong time) on 4 May 2001, to the best of the HKSAR 
Government's knowledge, information and belief, TraHK's portfolio held 
87,439,636 ordinary shares in HSBC Holdings plc, representing 0.94% of the
ordinary shares in issue.  The HKSAR Government has no ability to exercise any
voting rights in respect of the HSBC Holdings plc shares held in TraHK's
portfolio. The HKSAR Government believe that the registered holder of the HSBC
Holdings plc shares held by TraHK is HKSCC Nominees Limited.

A copy of the letter of notification is quoted below.

As a consequence of the transactions, the HKSAR Government's interest in the
ordinary shares of HSBC Holdings plc has fallen from 5.95% to 4.95%.

Letter from P A Stafford
Senior Assistant Secretary
HSBC Holdings Plc



Letter to HSBC Holdings Plc

Notification of Shareholding Interest

The Hong Kong Monetary Authority (for and on behalf of the Financial Secretary 
of Hong Kong as Controller of the Exchange Fund of the Hong Kong Special
Administrative Region) hereby notifies you that, as at 4 May 2001, the Hong Kong
Special Administrative Region Government (the principal address of which is
Central Government Offices, Lower Albert Road, Central, Hong Kong) had an
interest (for the account of the Exchange Fund) in 374,358,891 shares of US£0.50
each in the ordinary share capital of your Company.  The registered holder of
the above shares is HKSCC Nominees Limited.

As the beneficial owner of the shares referred to above the Hong Kong Special
Administrative Region Government has the right to call for delivery of any or
all of these shares from the registered holders.

In addition, the Hong Kong Special Administrative Region Government holds (for 
the account of the Exchange Fund) units in the Tracker Fund of Hong Kong
('TraHK') with the intention of meeting its obligations to distribute loyalty
bonus units to eligible investors under the terms of the Loyalty Bonus Scheme
outlined in the prospectus for TraHK.  As a holder of units in TraHK, the Hong
Kong Special Administrative Region Government has an undivided interest in all 
of the shares of HSBC Holdings plc held in TraHK's portfolio.  As at close of
business (Hong Kong time) on 4 May 2001, to the best of our knowledge, 
information and belief, TraHK's portfolio held 87,439,636 ordinary shares in
HSBC Holdings plc.  The Hong Kong Special Administrative Region Government has
no ability to exercise any voting rights in respect of the HSBC Holdings plc
shares held in TraHK's portfolio.  We believe that the registered holder of the
HSBC Holdings plc shares held by TraHK is HKSCC Nominees Limited.

Letter from (Pont Chiu)
Head (Support Services)
For and on behalf of the
Hong Kong Monetary Authority