09:17     KC-HSBC@EC0601B<03976> & KC-HSBC@EC0601C<03977> - 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.                                                             
                                                                              
    138,000,000 European Style (Cash Settled) Call Warrants 2005-2006         
    relating to existing issued ordinary shares of                            
    US$0.50 each of HSBC Holdings plc                                         
    ("Series A")                                                              
                                                                              
    268,000,000 European Style (Cash Settled) Call Warrants 2005-2006         
    relating to existing issued ordinary shares of                            
    US$0.50 each of HSBC Holdings plc                                         
    ("Series B")                                                              
                                                                              
    issued by                                                                 
                                                                              
    KBC Financial Products International Ltd.                                 
    (Incorporated with limited liability in the Cayman Islands)               
    unconditionally and irrevocably guaranteed by                             
                                                                              
    KBC Bank NV                                                               
    (Incorporated with limited liability in Belgium)                          
                                                                              
    Sponsor/Manager                                                           
                                                                              
    KBC Financial Products Hong Kong Limited                                  
                                                                              
    Announcement                                                              
                                                                              
    The directors of KBC Financial Products International Ltd. (the           
    "Issuer") announce their intention to issue the series' of Warrants       
    detailed below (the "Warrants"). Every ten warrants relating to one       
    existing issued ordinary share of US$0.50 each of HSBC Holdings plc.      
                                                                              
    Warrants    Share  Company            Issue Price                         
                                                                              
    Series A  US$0.50  HSBC Holdings plc     HK$0.680                         
    Series B  US$0.50  HSBC Holdings plc     HK$0.363                         
                                                                              
                                                                              
    Expiry Date        Trading Board Lots  Exercise Price                     
                                                                              
    3rd January, 2006               4,000       HK$124.00                     
                                                                              
    3rd January, 2006               4,000       HK$132.00                     
                                                                              
    The Warrants are European style and may only be exercised on the          
    relevant Expiry Date. The Warrants are in registered form and             
    exercisable only in the trading board lots specified above. Every ten     
    Warrants 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") equal to: (1) the Entitlement   
    (subject to any adjustment) multiplied by (i) 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          
    relevant Expiry Date less (ii) the relevant Exercise Price; less (2)      
    the Exercise Expenses (as defined in the terms and conditions of the      
    Warrants).                                                                
                                                                              
    If on any Expiry Date the Cash Settlement Amount is greater than zero,    
    the Warrants will be automatically exercised (without notice being        
    given to the holders of the Warrants) and the Issuer or its agent will    
    pay to such holders an amount calculated in the manner described above.   
                                                                              
    The payment and delivery obligations of the Issuer in relation to the     
    Warrants will be unconditionally and irrevocably guaranteed by KBC Bank   
    NV (the "Guarantor").                                                     
                                                                              
    The Warrants will not be offered, transferred or sold as part of the      
    initial distribution, or at any time thereafter, to or for the benefit    
    of any persons resident, incorporated, established or having their        
    usual residence in the United States. The offering of the Warrants will   
    comply with all applicable rules in the countries in which they are       
    offered.                                                                  
                                                                              
    An application will be made to the Stock Exchange for the listing of,     
    and permission to deal in the Warrants on the Stock Exchange. The date    
    of commencement of dealings is expected to be 14th March, 2005.