Statement re Joint Venture

HSBC Holdings PLC
17 September 2004


                                   STATEMENT

HSBC Asset Management, through its subsidiary HSBC Asset Management (Europe)
Limited, has agreed in principle to form a joint venture fund management company
in China with Shanxi Trust and Investment Corporation Limited.

Completion of the transaction is subject to final documentation and various
conditions including obtaining regulatory and other approvals.

A further announcement is expected to be made shortly.

Notes to editors:

1. HSBC Asset Management
HSBC Asset Management is the global fund management arm of the HSBC Group. With
a network of investment and client relationship teams worldwide, the company has
strong global investment capabilities that are delivered to clients locally. It
offers a comprehensive range of investment management solutions to institutions,
corporations and financial intermediaries and provides bespoke portfolio
management services to high net worth individuals. HSBC Asset Management has
funds under management of US$30 billion in Asia and US$192 billion globally at
31 July 2004.

In Asia, the investment teams of HSBC Asset Management are based in Hong Kong,
Taiwan, India, Singapore, Tokyo and Australia. The company is Hong Kong's
largest retirement fund manager and manages the HSBC Chinese Equity Fund, the
world's largest offshore Chinese equity fund with US$1.3 billion under
management. It was also the first company in Hong Kong to launch a China retail
fund which has access to China's A-share market, the HSBC China Momentum Fund.
In Taiwan, the company is one of the four oldest fund management companies and
manages the world's largest offshore Taiwan equity fund, The Taiwan Fund, Inc,
which is listed on the New York Stock Exchange.

2. 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, three sub-branches in Guangzhou and
Shanghai, and representative offices in Chengdu and Chongqing.



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