09:45     BP-HSBC @EC0508<03811>&BP-HSBC @EP0508<03815> - Ann. (1)            

    This announcement appears for information purposes only and does not      
    constitute an invitation or offer to acquire, purchase or subscribe for   
    the Warrants described below.                                             
                                                                              
    The Stock Exchange of Hong Kong Limited (the "Stock Exchange") takes no   
    responsibility for the contents of this announcement, makes no            
    representation as to its accuracy or completeness and expressly disclaims 
    any liability whatsoever for any loss howsoever arising from or in        
    reliance upon the whole or any part of the contents of this announcement. 
                                                                              
    288,000,000 European Style (Cash Settled) Call Warrants 2005 relating to  
    existing issued                                                           
    ordinary shares of US$0.50 each of HSBC Holdings plc                      
    ("Series A")                                                              
    and                                                                       
    288,000,000 European Style (Cash Settled) Put Warrants 2005 relating to   
    existing issued                                                           
    ordinary shares of US$0.50 each of HSBC Holdings plc                      
    ("Series B")                                                              
    issued by                                                                 
    BNP PARIBAS ARBITRAGE ISSUANCE B.V.                                       
    (incorporated in the Netherlands with its statutory seat in Amsterdam)    
                                                                              
    unconditionally and irrevocably guaranteed by                             
                                                                              
    BNP Paribas                                                               
    (incorporated in France)                                                  
                                                                              
    Sponsor                                                                   
    Paribas Asia Equity Limited                                               
                                                                              
    Announcement                                                              
                                                                              
    The directors of BNP Paribas Arbitrage Issuance B.V. (the "Issuer")       
    announce their intention to issue each series of the Warrants detailed    
    below (the "Warrants").  Every Exercise Amount of each series relates to  
    one share ("Share") of the relevant par value ("Par Value") of the        
    relevant company (the "Company") all specified below.                     
                                                                              
    Warrants        Type    Exercise Amount         Entitlement     Par Value 
    Company Issue Price     Expiry Date     Board Lot       Exercise Price    
    Series A        Call    Ten Warrants    One Share       US$0.50 HSBC      
    Holdings plc    HK$0.64 1 August 2005   4,000   HK$125.00                 
    Series B        Put     Ten Warrants    One Share       US$0.50 HSBC      
    Holdings plc    HK$0.61 1 August 2005   4,000   HK$125.00                 
                                                                              
    In respect of each series, the Warrants are European style and may only be
    exercised on the relevant Expiry Date.  Each series of the Warrants are   
    represented by a global certificate in the name of HKSCC Nominees Limited 
    in registered form and exercisable only in integral multiples of the      
    relevant board lot (the "Board Lot") specified above.  In respect of each 
    series, every Exercise Amount will entitle the holder on exercise thereof 
    to receive from the Issuer a payment of an amount in Hong Kong dollars    
    calculated by the Issuer (the "Cash Settlement Amount") as follows:       
                                                                              
    In respect of Series A Warrants:                                          
                                                                              
    Cash Settlement Amount =  Entitlement x (Closing Price - Exercise Price) -
    Exercise Expenses                                                         
                                                                              
    In respect of Series B Warrants:                                          
                                                                              
    Cash Settlement Amount = Entitlement x (Exercise Price - Closing Price) - 
    Exercise Expenses                                                         
                                                                              
                                                                              
    Where (i) "Closing Price" means the arithmetic mean of the closing price  
    of one Share (as derived from the Daily Quotation Sheet of the Stock      
    Exchange (subject to any adjustment)) for each Valuation Date (being each 
    of the five Business Days (as defined in the terms and conditions of the  
    Warrants)) immediately preceding the Expiry Date, and (ii) "Exercise      
    Expenses" has the meaning given to this term in the terms and conditions  
    of the Warrants.