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HSBC Completes Acquisition of 19.9 Per Cent Of Bank Of Communications Limited

Hamilton, Bermuda: 18 August 2004 - The Hongkong and Shanghai Banking Corporation Limited, a wholly-owned subsidiary of HSBC Holdings plc, has completed its acquisition of a 19.9 per cent interest in Bank of Communications Limited. The conditions to which the transaction was

subject, including the regulatory and other approvals, have been met.

This transaction represents the largest single equity investment in a mainland

China bank by a foreign bank.

Bank of Communications is China's fifth largest bank with total assets of

US$111.9 billion at 31 December 2003. It is one of only 15 commercial banks with

a national banking licence, giving it the ability to operate without

geographical restrictions. Headquartered in Shanghai, the bank has around 2,700

branches and outlets across 137 of the wealthiest cities in mainland China.

Notes to editors

1. Bank of Communications Limited

Founded in 1908 and headquartered in Shanghai, Bank of Communications Limited

was transformed into the first and largest joint stock commercial bank in China

in 1987. The bank has around 2,700 branches and outlets throughout mainland

China, branches in Hong Kong, New York, Tokyo and Singapore and overseas offices

in London and Frankfurt. It is currently the fifth largest bank in China with

total assets of US$111.9 billion at 31 December 2003.

2. The HSBC Group

The Hongkong and Shanghai Banking Corporation Limited is the founding and a

principal member of the HSBC Group which, with about 10,000 offices in 76

countries and territories and assets of US$1,154 billion at 30 June 2004, is one

of the world's largest banking and financial services organisations.

3. The Hongkong and Shanghai Banking Corporation Limited's financial adviser

The Investment Banking division of The Hongkong and Shanghai Banking Corporation

Limited acted as financial adviser to this transaction for HSBC.

4. Bank of Communications financial adviser

Goldman Sachs (Asia) L.L.C. acted as financial adviser to this transaction for

Bank of Communications Limited.

This information is provided by RNS

The company news service from the London Stock Exchange