HSBC joint acq of Fujian Bank

HSBC Holdings PLC
29 December 2003


                      HSBC AND PING AN OF CHINA TO JOINTLY

                        ACQUIRE FUJIAN ASIA BANK LIMITED

The Hongkong and Shanghai Banking Corporation Limited has entered into an
agreement to acquire 50 per cent of Fujian Asia Bank Limited for not more than
US$20 million in cash, funded from internal resources.

China Ping An Trust & Investment Co. Limited, a subsidiary of Ping An Insurance
(Group) Company of China Limited, will purchase the remaining 50 per cent of
Fujian Asia Bank.

Under the transaction agreement, China Ping An Trust & Investment Co. Limited
will inject a further US$23 million into Fujian Asia Bank, enlarging its paid up
capital to US$50 million and diluting HSBC's stake to an agreed 27 per cent. The
bank will be renamed Ping An Bank Limited upon completion.

The final consideration to be paid by HSBC will be determined at completion,
expected by the end of the first quarter of 2004, following a valuation of
Fujian Asia Bank's assets.

Fujian Asia Bank was established in mainland China in 1993 as a Sino-Foreign
Equity Joint Venture Bank. It had assets of US$32.7 million at 31 December 2002.
Ping An Bank's long term objective is to develop consumer banking businesses,
including credit card and real estate mortgage lending businesses, as and when
laws and regulations permit.

Notes to editors

1. The Hongkong and Shanghai Banking Corporation Limited

The Hongkong and Shanghai Banking Corporation Limited is the founding and a
principal member of the HSBC Group which, with some 9,500 offices in 79
countries and territories and assets of US$983 billion at 30 June 2003, is one
of the world's largest banking and financial services organisations.

2. Ping An Insurance (Group) Company of China Limited

Established in Shenzhen in 1988, Ping An Insurance (Group) Company of China
Limited (Ping An of China) has the second largest life insurance operation and
the third largest property and casualty insurance operation in the People's
Republic of China (PRC). Ping An of China also engages in investment trust and
securities businesses. It has over 30 million customers, around 250,000
employees and in 2002 achieved a total premium income of RMB61.971 billion.


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