09:55     BOC HONG KONG<02388> - Announcement (4)                             

    3.6         Credit card support services to BOC's overseas branches       
                                                                              
    BOC-CC provides business support services, such as business and product   
    development, information technology services, customer support services   
    and training services to certain of BOC's overseas branches in relation   
    to their credit card business and may in future provide such credit card  
    services and transactions to other branches as may be required from time  
    to time. For the provision of these services BOC-CC is paid on the basis  
    of cost plus a margin of 5% and as part of the commercial terms of the    
    credit card support services arrangement and BOC-CC's co-operation in     
    developing the credit card business, they may share in the profits and    
    losses arising from the credit card business of any of BOC's overseas     
    branches that utilise such services.                                      
                                                                              
    The table below sets out the historical aggregated commissions and        
    payments and the New Caps for all the credit card services and            
    transactions described above:                                             
                                                                              
            (HK$ million)                                                     
            2001                2002                2003                      
                                                                              
    Historical commissions and payments        Not Available                  
    50                49                                                      
                                                                              
            2005                2006                2007                      
                                                                              
    New Caps        170                220                290                 
                                                                              
    4.        Information Technology Services                                 
                                                                              
    BOCHK provides various information technology services to BOC's branches  
    and associates in Hong Kong, Macau, the Asia-Pacific region and China.    
    These services include technical consultancy, specific computer systems   
    and software development, systems maintenance, operation, support,        
    network installation, user training and support, control and supervision  
    of system security and safety services. In return, BOCHK receives a fee   
    on the basis of cost plus a margin of 5%.                                 
                                                                              
    The table below sets out the historical fees and the New Caps for the     
    information technology services:                                          
                                                                              
            (HK$ million)                                                     
            2001                2002                2003                      
                                                                              
    Historical fees        14                14                36             
                                                                              
            2005                2006                2007                      
                                                                              
    New Caps        80                110                140                  
                                                                              
    5.        Property Transactions                                           
                                                                              
    5.1        Leases and licences                                            
                                                                              
    The Group leases various premises from BOC and its associates and vice    
    versa in Hong Kong and China pursuant to various leases and licences      
    agreements at prevailing market rates at the relevant times.              
                                                                              
    5.2        Property management and letting agency                         
                                                                              
    Sun Chung provides property management and letting services to BOCHK at   
    Bank of China Tower, Bank of China Building, Bank of China Centre and     
    BOCHK may require such services to be provided by Sun Chung in respect    
    of other properties from time to time during the next three years. In     
    return, Sun Chung receives (i) a monthly management fee which is          
    partially paid by the Group's tenants with the remainder paid by the      
    Group in respect of the office space the Group uses; (ii) a commission    
    payment based on the total rents collected for the buildings, which       
    includes notional rents in respect of office space the Group uses; and    
    (iii) commission payments provided Sun Chung is able to find new tenants  
    for the buildings or the existing tenants renew their leases with the     
    Group.                                                                    
                                                                              
    The table below sets out historical revenues and payments and the New     
    Caps for all the property transactions described above:                   
                                                                              
            (HK$ million)                                                     
            2001                2002                2003                      
                                                                              
    Historical revenues and payments        99                81              
    84                                                                        
                                                                              
            2005                2006                2007