2008 Interim Report Section 1

5th Aug 2008 07:00



Directors' interests

According to the register of Directors' interests maintained by HSBC Holdings pursuant to section 352 of the Securities and Futures Ordinance of Hong Kong, the Directors of HSBC Holdings at 30 June 2008 had the following interests, all beneficial unless otherwise stated, in the shares and loan capital of HSBC and its associated corporations:

HSBC Holdings ordinary shares of US$0.50

			At 30 June 2008
	At 1 January2008 or date appointed if later		Beneficial owner		Child  under 18  or spouse		Controlled corporation		Trustee		Total interests1		Percentage  of ordinary shares  in issue
V H C Cheng	241,4692		172,489		121,723		-		-		294,212		0.00
J D Coombe	46,327		12,956		-		-		-		12,956		0.00
D J Flint	112,781		86,401		-		-		30,3143		116,715		0.00
A A Flockhart	164,9302		168,768		-		-		-		168,768		0.00
W K L Fung	328,000		208,000		-		120,000		-		328,000		0.00
M F Geoghegan	385,189		472,143		-		-		-		472,143		0.00
S K Green	536,652		651,963		-		-		-		651,963		0.00
S T Gulliver	2,235,4312		2,180,702		85,443		-		-		2,266,145		0.02
J W J Hughes-Hallett	554,435		-		-		-		299,6484		299,648		0.00
W S H Laidlaw	24,5002		20,000		-		-		4,5004		24,500		0.00
Sir Mark Moody-Stuart	10,840		5,000		840		-		5,0004		10,840		0.00
G Morgan	50,000		51,705		-		-		-		51,705		0.00
S W Newton	56,852		6,105		-		52,687		-		58,792		0.00
S M Robertson	98,317		5,497		-		-		93,0004		98,497		0.00
Sir Brian Williamson	23,164		23,955		-		-		-		23,955		0.00

1Details of executive Directors' other interests in HSBC Holdings ordinary shares of US$0.50 arising from the HSBC Holdings Savings-Related Share Option Plan, and the HSBC Share Plan are set out on the following pages. At 30 June 2008, the aggregate interests under the Securities and Futures Ordinance of Hong Kong of V H C Cheng, D J Flint, A A Flockhart, M F Geoghegan, S K Green and S T Gulliver in HSBC Holdings ordinary shares of US$0.50 (each of which represents less than 0.03 per cent of the shares in issue), including interests arising through employee share plans were: V H C Cheng - 778,239; D J Flint - 938,009; A A Flockhart - 547,581; M F Geoghegan - 2,176,889; S K Green - 2,415,168 and S T Gulliver - 3,495,185.

2W S H Laidlaw was appointed a Director on 1 January 2008, V H C Cheng was appointed a Director on 1 February 2008 and A A Flockhart and S T Gulliver were appointed Directors on 1 May 2008.

3Non-beneficial interest in 10,105 HSBC Holdings ordinary shares of US$0.50.

4Non-beneficial.

M F Geoghegan has an interest as beneficial owner in 280,000 ordinary shares of HK$5.00 each in Hang Seng Bank Limited (representing less than 0.02 per cent of the shares in issue), which he held throughout the period. 

S K Green has an interest as beneficial owner in €75,000 of HSBC Holdings plc 5½ per cent Subordinated Notes 2009, which he held throughout the period.

As a Director of HSBC France, S K Green has an interest as beneficial owner in one share of €5 in that company (representing less than 0.01 per cent of the shares in issue), which he held throughout the period. S K Green has waived his rights to receive dividends on the share and has undertaken to transfer the share to HSBC on ceasing to be a Director of HSBC France. M F Geoghegan ceased to have an interest as beneficial owner in one share of €5 in HSBC France when he retired as a Director of the company on 16 January 2008.

As Directors of HSBC Private Banking Holdings (Suisse) SA, S K Green and S T Gulliver each have an interest as beneficial owner in one share of CHF1,000 in that company (representing less than 0.01 per cent of the shares in issue), which they held throughout the period. The Directors have waived their rights to receive dividends on these shares and have undertaken to transfer these shares to HSBC on ceasing to be Directors of HSBC Private Banking Holdings (Suisse) SA.

HSBC Holdings Savings-Related Share Option Plan 

HSBC Holdings ordinary shares of US$0.50

	Date of award		Exercise price (£)		Exercisable from1		Exercisable until		Options held at 1 January 2008 or date appointed  if later		Options awarded during period		Options held at 30 June 2008
V H C Cheng	23 Apr 2003		5.3496		1 Aug 2008		31 Jan 2009		3,0702		-		3,070
D J Flint	25 Apr 2007		7.0872		1 Aug 2012		31 Jan 2013		2,310		-		2,310
A A Flockhart	25 Apr 2007		7.0872		1 Aug 2010		31 Jan 2011		1,3323		-		1,332
S K Green	23 Apr 2003		5.3496		1 Aug 2008		31 Jan 2009		3,070		-		3,070

The options were awarded for nil consideration and are exercisable at a 20 per cent discount to the average market value of the ordinary shares on the five business days immediately preceding the invitation date. The market value of the ordinary shares at 30 June 2008 was £7.7575. The highest and lowest market values during the period were £8.97 and £7.12. Market value is the mid-market price derived from the London Stock Exchange Daily Official List on the relevant date. Under the Securities and Futures Ordinance of Hong Kong, the options are categorised as unlisted physically settled equity derivatives.

1May be advanced to an earlier date in certain circumstances, e.g. retirement.

2Appointed a Director on 1 February 2008.

3Appointed a Director on 1 May 2008.

HSBC Holdings Restricted Share Plan 2000

HSBC Holdings ordinary shares of US$0.50

	Date of award		Year in which awards may vest	Awards held at 1 January 2008 or date appointed if later			Awards held at 30 June 20081
V H C Cheng	5 Mar 2003		2008		55,0282		-
D J Flint	5 Mar 2003		2008		136,192		-
M F Geoghegan	5 Mar 2003		2008		63,558		-
S K Green	5 Mar 2003		2008		136,192		-

Vesting of these awards was subject to the achievement of corporate performance conditions. Under the Securities and Futures Ordinance of Hong Kong, interests held through the HSBC Holdings Restricted Share Plan 2000 were categorised as the interests of a beneficiary of a trust.

1The corporate performance conditions were not met and, under the rules of the Plan, the awards (including additional shares arising from scrip dividends) held by: V H C Cheng, 55,028 shares; D J Flint, 137,568 shares; M F Geoghegan, 64,200 shares; and S K Green, 137,568 shares, were forfeited on 4 April 2008. The awards held by A A Flockhart, 27,514 shares; and S T Gulliver, 55,028 shares, who were appointed as Directors on 1 May 2008, were also forfeited on 4 April 2008. As a consequence, the fourth interim dividend for 2007 was not received on these forfeited share awards.

2Appointed a Director on 1 February 2008.

HSBC Share Plan

HSBC Holdings ordinary shares of US$0.50

Awards of Performance Shares

		Year in  which		Awards held at 1 January 2008 or date		Awards made  during period1				Awards vested  during period				Awards held
	Date of  award	awards  may vest		appointed  if later		Number		Monetary  value		Number		Monetary  value		at 30 June 20082
								£000				£000
V H C Cheng3	27 May 20054,5	2008		91,824		-		-		47,002		405		-
	6 Mar 2006	2009		88,534		-		-		-		-		90,639
	5 Mar 2007	2010		172,636		-		-		-		-		176,741
	3 Jun 2008	2011		-		129,325		1,103		-		-		129,325
D J Flint	27 May 20054,5	2008		194,796		-		-		100,721		868		-
	6 Mar 2006	2009		175,296		-		-		-		-		181,278
	5 Mar 2007	2010		256,029		-		-		-		-		264,766
	3 Jun 2008	2011		-		372,940		3,181		-		-		372,940

		Year in  which		Awards held at 1 January 2008 or date		Awards made  during period1				Awards vested  during period				Awards held
	Date of  award	awards  may vest		appointed  if later		Number		Monetary  value		Number		Monetary  value		at 30 June 20082
								£000				£000
A A Flockhart6	27 May 20057	2008		779		-		-		779		7		-
	6 Mar 2006	2009		66,401		-		-		-		-		67,980
	5 Mar 2007	2010		114,998		-		-		-		-		117,732
	3 Jun 2008	2011		-		127,174		1,085		-		-		127,174
M F Geoghegan	27 May 20054,5	2008		259,728		-		-		134,295		1,157		-
	6 Mar 2006	2009		219,121		-		-		-		-		226,598
	5 Mar 2007	2010		581,884		-		-		-		-		601,740
	3 Jun 2008	2011		-		876,408		7,476		-		-		876,408
S K Green	27 May 20054,5	2008		324,659		-		-		167,868		1,446		-
	6 Mar 2006	2009		273,900		-		-		-		-		283,246
	5 Mar 2007	2010		436,413		-		-		-		-		451,305
	3 Jun 2008	2011		-		1,025,584		8,748		-		-		1,025,584
S T Gulliver6	27 May 20057	2008		1,559		-		-		1,559		14		-
	6 Mar 2006	2009		110,667		-		-		-		-		113,299
	5 Mar 2007	2010		127,730		-		-		-		-		130,767
	3 Jun 2008	2011		-		55,409		473		-		-		55,409

Vesting of Performance Share awards is subject to the achievement of corporate performance conditions. Under the Securities and Futures Ordinance of Hong Kong, interests held through the HSBC Share Plan are categorised as the interests of a beneficiary of a trust.

1At the date of the award, 3 June 2008, the market value per share was £8.56. The shares acquired by the Trustee of the Plan were purchased at an average price of £8.53173.

2Includes additional shares arising from scrip dividends.

3Appointed a Director on 1 February 2008.

4The Earnings Per Share element of the performance conditions was met and that element of the Performance Share awards vested on 1 April 2008, when the market value per share was £8.61, as follows: V H C Cheng, 45,911 shares; D J Flint, 98,382 shares; M F Geoghegan, 131,176 shares; and S K Green, 163,970 shares. Awards representing the fourth interim dividend for 2007 vested on 7 May 2008, when the market value per share was £8.875, as follows: V H C Cheng, 1,091 shares; D J Flint, 2,339 shares;M F Geoghegan, 3,119 shares; and S K Green, 3,898 shares. 

5The Total Shareholder Return element of the performance conditions was not met and, under the terms of the Plan, that element of the Performance Share awards held by: V H C Cheng, 45,913 shares; D J Flint, 98,383 shares; M F Geoghegan, 131,177 shares; and S K Green, 163,971 shares was forfeited on 2 April 2008. As a consequence, the fourth interim dividend for 2007 was not received on the forfeited shares.

6Appointed a Director on 1 May 2008. 

7The Earnings Per Share element of the performance conditions was met and awards representing the fourth interim dividend for 2007 on that element of the 2005 Performance Share Awards vested on 7 May 2008, when the market value per share was £8.875, as follows: A A Flockhart, 779 shares; and S T Gulliver, 1,559 shares. Prior to their appointment as Directors, the Earnings Per Share element of the 2005 Performance Share awards vested on 1 April 2008, when the market value per share was £8.61, as follows: A A Flockhart, 32,794 shares; and S T Gulliver, 65,587 shares. The Total Shareholder Return element of the performance conditions was not met and, under the terms of the Plan, that element of the Performance Share awards was forfeited on 2 April 2008, as follows: A A Flockhart, 32,795 shares; and S T Gulliver, 65,587 shares. As a consequence, the fourth interim dividend for 2007 was not received on the forfeited share awards.

Awards of Restricted Shares

		Years in  which		Awards held		Awards made from date appointed to 30 June 20081				Awards vested from date appointed to 30 June 2008				Awards held
	Date of  award	awards may vest		on dateappointed		Number		Monetary  value		Number		Monetary  value		at 30 June 20082
								£000				£000
V H C Cheng3	3 Mar 2008	2011		-		82,295		646		-		-		84,252
A A Flockhart4	31 Oct 2007	2010		51,167		-		-		-		-		52,383
	3 Mar 2008	2010		11,929		-		-		-		-		12,212
S T Gulliver4	6 Mar 2006	20095		143,677		-		-		-		-		147,093
	5 Mar 2007	2009-20105		305,591		-		-		-		-		312,857
	3 Mar 2008	2009-20115		458,708		-		-		-		-		469,615

Vesting of Restricted Share awards is normally subject to the Director remaining an employee on the vesting date. The vesting date may be advanced to an earlier date in certain circumstances, e.g. death. Under the Securities and Futures Ordinance of Hong Kong, interests held through the HSBC Share Plan are categorised as the interests of a beneficiary of a trust.

1At the date of the award, 3 March 2008, the market value per share was £7.90. The shares acquired by the Trustee of the Plan were purchased at an average price of £7.848143.

2Includes additional shares arising from scrip dividends.

3Appointed a Director on 1 February 2008.

4Appointed a Director on 1 May 2008.

533 per cent of the award vests on each of the first and second anniversaries of the date of the award, with the balance vesting on the third anniversary of the date of the award.

No Directors held any short position as defined in the Securities and Futures Ordinance of Hong Kong in the shares and loan capital of HSBC and its associated corporations. Save as stated above, none of the Directors had an interest in any shares or debentures of HSBC or any associated corporation at the beginning or at the end of the period, and none of the Directors or members of their immediate family was awarded or exercised any right to subscribe for any shares or debentures in any HSBC corporation during the period. Since the end of the period, the interests of each of the following Directors have increased by the number of HSBC Holdings ordinary shares shown against their name:

	Beneficialowner		Child  under 18 or spouse		Controlled corporation		Trustee		Beneficiary of a trust
V H C Cheng	-		-		-		-		3,7591
J D Coombe	1392		-		-		-		-
D J Flint	9433		-		-		3242		4,7661
M F Geoghegan	2,5002		-		-		-		8,8531
S K Green	5,2824		-		-		-		7,8511
S T Gulliver	13,7052		52		-		-		12,5451
G Morgan	5522		-		-		-		-
S W Newton	652		-		5622		-		-
S M Robertson	582		-		-		-		-
Sir Brian Williamson	2562		-		-		-		-

1Scrip dividend on awards held under the HSBC Share Plan.

2Scrip dividend. 

3Comprises scrip dividend on shares held as beneficial owner (852 shares), the automatic reinvestment of dividend income by an Individual Savings Account or Personal Equity Plan manager (59 shares), the acquisition of shares in the HSBC Holdings UK Share Ownership Plan through regular monthly contributions (16 shares) and the automatic reinvestment of dividend income on shares held in the plan (16 shares). 

4Comprises scrip dividend on shares held as beneficial owner (5,250 shares), the acquisition of shares in the HSBC Holdings UK Share Ownership Plan through regular monthly contributions (16 shares) and the automatic reinvestment of dividend income on shares held in the plan (16 shares).

2Employee share plans

To help align the interests of employees with those of shareholders, share options are granted under all-employee share plans and discretionary awards of Performance Shares and Restricted Shares made under the HSBC Share Plan. There have been no awards of discretionary options since 30 September 2005. The following are particulars of outstanding employee share options, including those held by employees working under employment contracts that are regarded as 'continuous contracts' for the purposes of the Hong Kong Employment Ordinance. The options were granted at nil consideration. No options have been granted to substantial shareholders, suppliers of goods or services, or in excess of the individual limit for each share plan. No options were cancelled during the period. The options which were awarded, exercised or lapsed during the period are detailed in the tables below. Particulars of options held by Directors of HSBC Holdings are set out on page 239.

All-employee share plans

The exercise period of the options awarded under all-employee share plans may be advanced to an earlier date in certain circumstances, for example on retirement, or on the death of a participant, options may be exercised up to six months beyond the normal exercise period. The closing price per HSBC Holdings ordinary share on 29 April 2008, the day before options were awarded in 2008, was £8.71. The options are exercisable at a 20 per cent discount to the average market value of the ordinary shares on the five business days immediately preceding the invitation date, unless otherwise indicated.

HSBC Holdings Savings-Related Share Option Plan 

HSBC Holdings ordinary shares of US$0.50

Date of award	Exercise price (£)		Exercisable from		Exercisable until		Options at1 January 2008		Options awarded during period		Options exercised during  period1		Options lapsed during period		Options at 30 June 2008
2 May 2002	6.3224		1 Aug 2007		31 Jan 2008		86,920		-		62,288		22,281		2,351
23 Apr 2003	5.3496		1 Aug 2008		31 Jan 2009		10,402,796		-		87,149		94,153		10,221,494
21 Apr 2004	6.4720		1 Aug 2007		31 Jan 2008		132,967		-		90,779		38,874		3,314
21 Apr 2004	6.4720		1 Aug 2009		31 Jan 2010		4,941,092		-		31,391		117,909		4,791,792
24 May 2005	6.6792		1 Aug 2008		31 Jan 2009		3,522,870		-		25,678		111,612		3,385,580
24 May 2005	6.6792		1 Aug 2010		31 Jan 2011		4,938,431		-		26,178		170,782		4,741,471
26 Apr 2006	7.6736		1 Aug 2009		31 Jan 2010		3,817,398		-		12,672		406,141		3,398,585
26 Apr 2006	7.6736		1 Aug 2011		31 Jan 2012		3,062,172		-		6,390		292,130		2,763,652
25 Apr 2007	7.0872		1 Aug 2010		31 Jan 2011		5,767,372		-		4,611		610,474		5,152,287
25 Apr 2007	7.0872		1 Aug 2012		31 Jan 2013		4,075,471		-		1,574		325,115		3,748,782
30 Apr 2008	6.8160		1 Aug 2011		31 Jan 2012		-		7,169,605		-		17,343		7,152,262
30 Apr 2008	6.8160		1 Aug 2013		31 Jan 2014		-		6,142,429		-		9,718		6,132,711

1The weighted average closing price of the shares immediately before the dates on which options were exercised was £8.00.

The fair value of options granted in the period under the Plan was £29 million.

HSBC Holdings Savings-Related Share Option Plan: International

HSBC Holdings ordinary shares of US$0.50 

Date of award	Exercise  price		Exercisable from		Exercisable until		Options at1 January 2008		Optionsawarded during period		Optionsexercised during  period1		Optionslapsed during period		Options at30 June 2008
	(£)
2 May 2002	6.3224		1 Aug 2007		31 Jan 2008		39,172		-		11,080		5,735		22,357
23 Apr 2003	5.3496		1 Aug 2008		31 Jan 2009		10,488		-		-		7,866		2,622
8 May 2003	5.3496		1 Aug 2008		31 Jan 2009		5,068,502		-		73,406		78,679		4,916,417
21 Apr 2004	6.4720		1 Aug 2007		31 Jan 2008		31,145		-		-		-		31,145
21 Apr 2004	6.4720		1 Aug 2009		31 Jan 2010		12,365		-		-		4,909		7,456
10 May 2004	6.4720		1 Aug 2007		31 Jan 2008		250,528		-		115,753		34,137		100,638
10 May 2004	6.4720		1 Aug 2009		31 Jan 2010		2,554,187		-		38,265		81,585		2,434,337
24 May 2005	6.6792		1 Aug 2008		31 Jan 2009		9,435,222		-		97,001		415,094		8,923,127
24 May 2005	6.6792		1 Aug 2010		31 Jan 2011		3,403,578		-		34,512		149,425		3,219,641
26 Apr 2006	7.6736		1 Aug 2007		31 Oct 2007		31,658		-		-		31,658		-
26 Apr 2006	7.6736		1 Aug 2009		31 Jan 2010		1,804,327		-		2,733		179,839		1,621,755
26 Apr 2006	7.6736		1 Aug 2011		31 Jan 2012		406,743		-		423		45,055		361,265
25 Apr 2007	7.0872		1 Aug 2008		31 Oct 2008		1,543,966		-		3,689		96,258		1,444,019
25 Apr 2007	7.0872		1 Aug 2010		31 Jan 2011		3,436,093		-		872		383,197		3,052,024
25 Apr 2007	7.0872		1 Aug 2012		31 Jan 2013		975,763		-		203		131,574		843,986
30 Apr 2008	6.8160		1 Aug 2009		31 Oct 2009		-		1,988,482		-		1,720		1,986,762
30 Apr 2008	6.8160		1 Aug 2011		31 Jan 2012		-		3,467,432		-		3,600		3,463,832
30 Apr 2008	6.8160		1 Aug 2013		31 Jan 2014		-		1,253,627		-		-		1,253,627
	(US$)
26 Apr 2006	13.3290		1 Aug 2007		31 Oct 2007		5,273		-		-		5,273		-
26 Apr 2006	13.3290		1 Aug 2009		31 Jan 2010		1,475,871		-		16,398		182,532		1,276,941
26 Apr 2006	13.3290		1 Aug 2011		31 Jan 2012		385,965		-		3,424		48,024		334,517
25 Apr 2007	14.74782		1 Aug 2008		31 Oct 2008		671,449		-		88		147,631		523,730
25 Apr 2007	13.8803		1 Aug 2008		31 Oct 2008		337,780		-		-		24,548		313,232
25 Apr 2007	13.8803		1 Aug 2010		31 Jan 2011		2,687,923		-		4,761		344,250		2,338,912
25 Apr 2007	13.8803		1 Aug 2012		31 Jan 2013		760,659		-		956		91,717		667,986
30 Apr 2008	14.48762		1 Aug 2009		31 Oct 2009		-		615,822		-		86		615,736
30 Apr 2008	13.6354		1 Aug 2009		31 Oct 2009		-		425,697		-		481		425,216
30 Apr 2008	13.6354		1 Aug 2011		31 Jan 2012		-		1,979,660		-		1,438		1,978,222
30 Apr 2008	13.6354		1 Aug 2013		31 Jan 2014		-		537,563		-		-		537,563

Date of award	Exercise  price		Exercisable from		Exercisable until		Options at1 January 2008		Optionsawarded during period		Optionsexercised during  period1		Optionslapsed during period		Options at30 June 2008
	(€)
26 Apr 2006	11.0062		1 Aug 2007		31 Oct 2007		847		-		-		847		-
26 Apr 2006	11.0062		1 Aug 2009		31 Jan 2010		176,800		-		-		42,590		134,210
26 Apr 2006	11.0062		1 Aug 2011		31 Jan 2012		35,495		-		-		12,615		22,880
25 Apr 2007	10.4217		1 Aug 2008		31 Oct 2008		122,632		-		-		6,902		115,730
25 Apr 2007	10.4217		1 Aug 2010		31 Jan 2011		361,842		-		-		92,446		269,396
25 Apr 2007	10.4217		1 Aug 2012		31 Jan 2013		125,856		-		-		45,938		79,918
30 Apr 2008	8.6720		1 Aug 2009		31 Oct 2009		-		163,223		-		-		163,223
30 Apr 2008	8.6720		1 Aug 2011		31 Jan 2012		-		501,343		-		-		501,343
30 Apr 2008	8.6720		1 Aug 2013		31 Jan 2014		-		209,331		-		-		209,331
	(HK$)
26 Apr 2006	103.4401		1 Aug 2007		31 Oct 2007		1,961		-		-		1,961		-
26 Apr 2006	103.4401		1 Aug 2009		31 Jan 2010		3,891,154		-		8,743		245,622		3,636,789
26 Apr 2006	103.4401		1 Aug 2011		31 Jan 2012		1,024,842		-		7,221		94,710		922,911
25 Apr 2007	108.4483		1 Aug 2008		31 Oct 2008		2,108,126		-		4,879		256,566		1,846,681
25 Apr 2007	108.4483		1 Aug 2010		31 Jan 2011		4,481,255		-		10,526		562,304		3,908,425
25 Apr 2007	108.4483		1 Aug 2012		31 Jan 2013		1,332,074		-		2,690		223,744		1,105,640
30 Apr 2008	106.2478		1 Aug 2009		31 Oct 2009		-		2,941,862		-		-		2,941,862
30 Apr 2008	106.2478		1 Aug 2011		31 Jan 2012		-		4,174,635		-		-		4,174,635
30 Apr 2008	106.2478		1 Aug 2013		31 Jan 2014		-		1,380,594		-		-		1,380,594

1The weighted average closing price of the shares immediately before the dates on which the options were exercised was £7.93.

2Exercisable at a 15 per cent discount to the average market value of the ordinary shares on the five business days immediately preceding the invitation date.

The fair value of options granted in the period under the Plan was £39 million.

Fair values of share options awarded under all-employee share option plans in 2008, measured at the date of grant of the option, are calculated using a binomial lattice methodology that is based on the underlying assumptions of the Black-Scholes model. 

The expected life of options depends on the behaviour of option holders, which is incorporated into the option model consistent with historic observable data. The fair values calculated are inherently subjective and uncertain due to the assumptions made and the limitations of the model used. The significant weighted average assumptions used to estimate the fair value of the options granted in 2008 were as follows:

	1-year savings-related share option plan		3-year  savings-related share option plans		5-year savings-related share optionplans
Risk-free interest rate (%)1	4.5		4.5		4.5
Expected life (years)2	1		3		5
Expected volatility (%)3	25		25		25

1The risk-free interest rate was determined from the UK gilts zero-coupon yield curve for the HSBC Holdings Savings-Related Share Option Plan. A similar yield curve was used for the HSBC Holdings Savings-Related Share Option Plan: International.

2Expected life is not a single input parameter but a function of various behavioural assumptions.

3Expected volatility is estimated by considering historic average HSBC share price volatility and implied volatility for traded options over HSBC shares of similar maturity to those of the employee options.

Expected dividend growth, denominated in US dollars, was determined to be 7 per cent for the first year and 8 per cent thereafter, consistent with consensus analyst forecasts.

Discretionary share incentive plans

The exercise period of the options awarded under discretionary share incentive plans may be advanced to an earlier date in certain circumstances, for example on retirement, or on the death of a participant, options may be exercised up to 12 months beyond the normal exercise period.

HSBC Holdings Executive Share Option Scheme1

HSBC Holdings ordinary shares of US$0.50 

Date of  award	Exercise price (£)		Exercisable from		Exercisable until		Options at 1 January  2008		Options exercised during period2		Options lapsed during period		Options at  30 June  2008
16 Mar 1998	6.2767		16 Mar 2001		16 Mar 2008		427,641		414,141		13,500		-
29 Mar 1999	6.3754		3 Apr 2002		29 Mar 2009		9,794,913		805,177		2,934		8,986,802
10 Aug 1999	7.4210		10 Aug 2002		10 Aug 2009		91,058		12,000		-		79,058
31 Aug 1999	7.8710		31 Aug 2002		31 Aug 2009		4,000		-		-		4,000
3 Apr 2000	7.4600		3 Apr 2003		3 Apr 2010		7,920,930		265,602		60,935		7,594,393

1The HSBC Holdings Executive Share Option Scheme expired on 26 May 2000. No options have been granted under the Scheme since that date. 

2The weighted average closing price of the shares immediately before the dates on which options were exercised was £8.20.

HSBC Holdings Group Share Option Plan1

HSBC Holdings ordinary shares of US$0.50 

Date of award	Exercise  price (£)		Exercisable from		Exercisable until		Options at  1 January 2008		Options exercised during period2		Options lapsed during period		Options at 30 June 2008
4 Oct 2000	9.6420		4 Oct 2003		4 Oct 2010		306,641		-		700		305,941
23 Apr 2001	8.7120		23 Apr 2004		23 Apr 2011		27,166,097		70,725		291,334		26,804,038
30 Aug 2001	8.2280		30 Aug 2004		30 Aug 2011		153,518		-		-		153,518
7 May 2002	8.4050		7 May 2005		7 May 2012		29,562,689		142,099		451,175		28,969,415
30 Aug 2002	7.4550		30 Aug 2005		30 Aug 2012		354,600		2,000		8,500		344,100
2 May 2003	6.9100		2 May 2006		2 May 2013		28,957,295		1,157,235		167,920		27,632,140
29 Aug 2003	8.1300		29 Aug 2006		29 Aug 2013		394,784		-		14,130		380,654
3 Nov 2003	9.1350		3 Nov 2006		3 Nov 2013		4,069,800		-		50,000		4,019,800
30 Apr 2004	8.2830		30 Apr 2007		30 Apr 2014		53,842,886		99,000		1,557,025		52,186,861
27 Aug 2004	8.6500		27 Aug 2007		27 Aug 2014		312,000		-		6,930		305,070
20 Apr 2005	8.3620		20 Apr 2008		20 Apr 2015		7,095,295		30,000		217,750		6,847,545

1The HSBC Holdings Group Share Option Plan expired on 26 May 2005. No options have been granted under the Plan since that date. 

2The weighted average closing price of the shares immediately before the dates on which options were exercised was £8.39. 

HSBC Share Plan 

HSBC Holdings ordinary shares of US$0.50 

Date of award	Exercise  price (£)		Exercisable from		Exercisable until		Options at1 January 2008		Options awarded during period		Options exercised during period		Optionslapsed during period		Options at30 June 2008
21 Jun 2005	8.794		21 Jun 2008		21 Jun 2009		449,455		-		-		224,7281		224,727
30 Sep 2005	9.170		30 Sep 2008		30 Sep 2015		74,985		-		-		-		74,985

1The exercise of outstanding options which were granted on 21 June 2005, is subject to the same corporate performance conditions as those applicable to awards of Performance Shares made in 2005 under the HSBC Share Plan. The TSR element of the performance conditions was not met and under the terms of the Plan, options over 224,728 shares lapsed.

Subsidiary company share plans

HSBC France and HSBC Private Bank France

When it was acquired in 2000, HSBC France and one of its subsidiary companies, HSBC Private Bank France, operated employee share option plans under which options could be granted over their respective shares. No further options will be granted under either of these companies' plans. The following are details of options to acquire shares in HSBC France and HSBC Private Bank France.

HSBC France

shares of €5

Date of  award	Exercise  price (€)		Exercisable from		Exercisable until		Options at 1 January 2008		Options exercised during period1		Options  lapsed  during period		Options at 30 June 20081
29 Apr 1998	73.48		7 Jun 2000		29 Apr 2008		100,379		100,379		-		-
7 Apr 1999	81.71		7 Jun 2000		7 Apr 2009		304,402		9,250		-		295,152
12 Apr 2000	142.50		1 Jan 2002		12 Apr 2010		602,250		-		-		602,250

1Following exercise of the options, the HSBC France shares will be exchanged for HSBC Holdings ordinary shares in the same ratio as for the acquisition of HSBC France (13 HSBC Holdings ordinary shares for each HSBC France share). At 30 June 2008, The HSBC Holdings Employee Benefit Trust 2001 (No. 1) held 10,240,101 HSBC Holdings ordinary shares which may be exchanged for HSBC France shares arising from the exercise of these options.

HSBC Private Bank France 

shares of €2 

Date of  award	Exercise  price (€)		Exercisable from		Exercisable until		Options at  1 January 2008		Options  exercised  during period1		Options  lapsed during period		Options at  30 June 20081
21 Dec 1999	10.84		21 Dec 2000		21 Dec 2009		33,250		3,000		-		30,250
9 Mar 2000	12.44		27 Jun 2004		31 Dec 2010		20,626		-		-		20,626
15 May 2001	20.80		15 May 2002		15 May 2011		141,525		-		-		141,525
1 Oct 2002	22.22		2 Oct 2005		1 Oct 2012		145,575		-		-		145,575

1Following exercise of the options, the HSBC Private Bank France shares will be exchanged for HSBC Holdings ordinary shares in the ratio of 1.83 HSBC Holdings ordinary shares for each HSBC Private Bank France share. At 30 June 2008, The CCF Employee Benefit Trust 2001 held 950,462 HSBC Holdings ordinary shares which may be exchanged for HSBC Private Bank France shares arising from the exercise of these options.

HSBC Finance and its subsidiaries

Following the acquisition of HSBC Finance in 2003, all outstanding options and equity-based awards over HSBC Finance common shares were converted into rights to receive HSBC Holdings ordinary shares in the same ratio as the share exchange offer for the acquisition of HSBC Finance (2.675 HSBC Holdings ordinary shares for each HSBC Finance common share) and the exercise prices per share were adjusted accordingly. No further options will be granted under any of these plans.

The following are details of options and equity-based awards to acquire shares in HSBC Holdings. At 30 June 2008, the HSBC (Household) Employee Benefit Trust 2003 held 1,804,629 HSBC Holdings ordinary shares and 196,455 American Depositary Shares, each of which represents five HSBC Holdings ordinary shares, which may be used to satisfy the exercise of employee share options.

HSBC Finance: 1996 Long-Term Executive Incentive Compensation Plan

HSBC Holdings ordinary shares of US$0.50 

Date of  award	Exercise  price (US$)		Exercisable  from		Exercisable until		Options at  1 January 2008		Options  exercised during period1		Options  lapsed during period		Options at 30 June 2008
1 Jul 1998	19.21		1 Jul 1999		1 Jul 2008		80,250		-		-		80,250
9 Nov 1998	13.71		9 Nov 1999		9 Nov 2008		841,566		63,825		-		777,741
17 May 1999	16.99		17 May 2000		17 May 2009		334,375		-		-		334,375
31 Aug 1999	13.96		31 Aug 2000		31 Aug 2009		300,938		-		-		300,938
8 Nov 1999	16.96		8 Nov 2000		8 Nov 2009		4,250,577		-		-		4,250,577
30 Jun 2000	15.70		30 Jun 2001		30 Jun 2010		26,846		-		-		26,846
8 Feb 2000	13.26		8 Feb 2001		8 Feb 2010		66,875		-		-		66,875
13 Nov 2000	18.40		13 Nov 2001		13 Nov 2010		5,728,514		-		-		5,728,514
12 Nov 2001	21.37		12 Nov 2002		12 Nov 2011		7,571,322		-		-		7,571,322
20 Nov 2002	10.66		20 Nov 2003		20 Nov 2012		2,454,298		12,038		40,125		2,402,135

1The weighted average closing price of the shares immediately before the dates on which options were exercised was £8.13.

HSBC Finance: 1996 Long-Term Executive Incentive Compensation Plan1

HSBC Holdings ordinary shares of US$0.50 

Date of  award	Vesting from		Vesting  until2		Rights at  1 January 2008		Rights vested during period3		Rights  lapsed  during period		Rights at  30 June 2008
2 Dec 2002	2 Dec 2005		2 Dec 2007		1,784		1,784		-		-
2 Jan 2003	2 Jan 2006		2 Jan 2008		447		447		-		-
15 Jan 2003	15 Jan 2006		15 Jan 2008		10,480		10,480		-		-
3 Feb 2003	3 Feb 2006		3 Feb 2008		2,906		2,906		-		-
14 Feb 2003	14 Feb 2006		14 Feb 2008		49,134		49,134		-		-
3 Mar 2003	3 Mar 2006		3 Mar 2008		447		447		-		-

1Awards of Restricted Stock Rights which represent a right to receive shares for nil consideration if the employee remains in the employment of HSBC Finance at the date of vesting. 

2In certain circumstances, for example on the death of a participant, shares may vest and be delivered beyond the normal vesting period.

3The weighted average closing price of the shares immediately before the dates on which rights vested was £7.58.

Renaissance Holdings, Inc: Amended and Restated 1997 Stock Incentive Plan 

HSBC Holdings ordinary shares of US$0.50 

Date of  award	Exercise  price (US$)		Exercisable  from		Exercisable until		Options at 1 January 2008		Options exercised  during period		Options  lapsed  during period		Options at 30 June 2008
1 Jan 1998	1.25		1 Jan 1999		1 Jan 2008		1,424		-		1,424		-
1 Oct 1998	1.74		1 Oct 1999		1 Oct 2008		803		-		-		803
1 Jan 1999	2.24		1 Jan 2000		1 Jan 2009		5,024		-		-		5,024

Bank of Bermuda

Following the acquisition of Bank of Bermuda in 2004, all outstanding options over Bank of Bermuda shares were converted into rights to receive HSBC Holdings ordinary shares based on the consideration of US$40 for each Bank of Bermuda share and the average closing price of HSBC Holdings ordinary shares, derived from the London Stock Exchange Daily Official List, for the five business days preceding the closing date of the acquisition. No further options will be granted under any of these plans.

The following are details of options to acquire shares in HSBC Holdings. At 30 June 2008, the HSBC (Bank of Bermuda) Employee Benefit Trust 2004 held 1,879,024 HSBC Holdings ordinary shares which may be used to satisfy the exercise of these options.

Bank of Bermuda: Executive Share Option Plan 1997 

HSBC Holdings ordinary shares of US$0.50 

Date of  award	Exerciseprice (US$)		Exercisable  from		Exercisable  until		Options at  1 January  2008		Options exercised  during period		Options  lapsed  during period		Options at  30 June  2008
1 Jul 1998	9.61		1 Jul 1999		1 Jul 2008		67,813		-		-		67,813
23 Feb 1999	7.40		23 Feb 2000		23 Feb 2009		4,904		-		-		4,904
3 Aug 1999	7.10		3 Aug 2000		3 Aug 2009		7,634		-		-		7,634
4 Feb 2000	7.21		4 Feb 2001		4 Feb 2010		31,678		-		-		31,678
1 Jun 2000	7.04		1 Jun 2001		1 Jun 2010		61,649		-		-		61,649
31 Jul 2000	10.11		31 Jul 2001		31 Jul 2010		27,744		-		-		27,744
11 Jan 2001	14.27		11 Jan 2002		11 Jan 2011		53,943		-		-		53,943

Bank of Bermuda: Share Option Plan 2000 

HSBC Holdings ordinary shares of US$0.50 

Date of  award	Exerciseprice (US$)		Exercisable  from		Exercisable  until		Options at  1 January  2008		Options exercised during period1		Options  lapsed  during period		Options at  30 June  2008
11 Jan 2001	14.27		11 Jan 2002		11 Jan 2011		134,857		-		-		134,857
6 Feb 2001	16.41		6 Feb 2002		6 Feb 2011		575,170		1,466		11,265		562,439
29 Mar 2001	15.39		29 Mar 2002		29 Mar 2011		270		-		-		270
16 Apr 2001	15.57		16 Apr 2002		16 Apr 2011		539		-		-		539
6 Jun 2001	18.35		6 Jun 2002		6 Jun 2011		8,091		-		-		8,091
16 Jul 2001	16.87		16 Jul 2002		16 Jul 2011		14,930		-		-		14,930
28 Aug 2001	15.39		28 Aug 2002		28 Aug 2011		13,486		-		-		13,486
26 Sep 2001	12.79		26 Sep 2002		26 Sep 2011		353,891		3,695		-		350,196
30 Jan 2002	15.60		30 Jan 2003		30 Jan 2012		1,226		-		-		1,226
5 Feb 2002	16.09		5 Feb 2003		5 Feb 2012		762,771		3,188		9,891		749,692
10 Jul 2002	15.84		10 Jul 2003		10 Jul 2012		12,260		-		-		12,260
4 Feb 2003	10.69		4 Feb 2004		4 Feb 2013		133,042		2,530		-		130,512
21 Apr 2003	11.85		21 Apr 2004		21 Apr 2013		6,833		-		-		6,833

1The weighted average closing price of the shares immediately before the dates on which options were exercised was £7.99.

Bank of Bermuda: Directors' Share Option Plan

HSBC Holdings ordinary shares of US$0.50 

Date of  award	Exerciseprice (US$)		Exercisable  from		Exercisable  until		Options at  1 January  2008		Options exercised  during period		Options  lapsed  during period		Options at  30 June  2008
22 Sep 1999	8.02		22 Sep 2000		22 Sep 2009		3,082		-		-		3,082
20 Sep 2000	11.31		20 Sep 2001		20 Sep 2010		4,046		-		-		4,046
28 Mar 2001	15.76		28 Mar 2002		28 Mar 2011		12,811		-		-		12,811
3 Apr 2002	16.01		3 Apr 2003		3 Apr 2012		24,520		-		-		24,520
30 Apr 2003	12.23		30 Apr 2004		30 Apr 2013		4,904		-		-		4,904

3Notifiable interests in share capital

The following disclosures of major holdings of voting rights have been made to the Company pursuant to the requirements of the Financial Services Authority Disclosure and Transparency Rule 5:

Legal and General Group plc gave notice on 18 April 2008 that it had a holding on 16 April 2008 of 593,425,216 HSBC Holdings ordinary shares, representing 5.00 per cent of the ordinary shares in issue at that date, and gave notice on 21 April 2008 that on 18 April 2008 its holding of HSBC ordinary shares fell below 5.00 per cent of the ordinary shares in issue at that date;

Singularis Holdings Limited; AWAL Trust Company Limited; and Maan Abdulwahed Al-Sanea gave notice on 16 April 2007 that it had an indirect interest on 16 April 2007 in 360,055,575 HSBC Holdings ordinary shares, representing 3.11 per cent of the ordinary shares in issue at that date; and

Barclays plc gave notice on 17 April 2007 that it had an indirect interest on 16 April 2007 of 518,233,657 HSBC Holdings ordinary shares, representing 4.47 per cent of the ordinary shares in issue at that date.

As at 30 June 2008, according to the register maintained by HSBC Holdings pursuant to section 336 of the Securities and Futures Ordinance of Hong Kong, The Royal Bank of Scotland Group plc had a long position of 624,613,473 HSBC Holdings ordinary shares on 25 June 2008, representing 5.20 per cent of the ordinary shares in issue at that date and a short position of 484,464,682 HSBC Holdings ordinary shares on 25 June 2008, representing 4.04 per cent of the ordinary shares in issue at that date. After the balance sheet date, The Royal Bank of Scotland Group plc advised that it had a long position of 691,998,426 HSBC Holdings ordinary shares on 23 July 2008, representing 5.76 per cent of the ordinary shares in issue at that date and a short position of 602,496,968 HSBC Holdings ordinary shares on 23 July 2008, representing 5.01 per cent of the ordinary shares in issue at that date.

4Dealings in HSBC Holdings shares

Except for dealings as intermediaries by HSBC Bank, HSBC Financial Products (France) and The Hongkong and Shanghai Banking Corporation, which are members of a European Economic Area exchange, neither HSBC Holdings nor any subsidiary undertaking has bought, sold or redeemed any securities of HSBC Holdings during the six months to 30 June 2008.

5Second interim dividend for 2008

The Directors have declared a second interim dividend for 2008 of US$0.18 per ordinary share. The second interim dividend will be payable on 8 October 2008 to holders of ordinary shares on the Register at the close of business on 22 August 2008. The dividend will be payable in cash, in US dollars, sterling or Hong Kong dollars, or a combination of these currencies, at the exchange rates quoted by HSBC Bank plc in London at or about 11.00 am on 29 September 2008, and with a scrip dividend alternative. Particulars of these arrangements will be mailed to shareholders on or about 3 September 2008 and elections must be received by 24 September 2008.

The dividend will be payable on shares held through Euroclear France, the settlement and central depositary system for Euronext Paris, on 8 October 2008 to the holders of record on 22 August 2008. The dividend will be payable in cash in euros at the exchange rate on 29 September 2008, and with a scrip dividend alternative. Particulars of these arrangements will be announced through Euronext Paris on 20 August and 28 August 2008.

The dividend will be payable on American Depositary Shares ('ADSs'), each of which represents five ordinary shares, on 8 October 2008 to holders of record on 22 August 2008. The dividend of US$0.90 per ADS will be payable in cash, in US dollars and with a scrip dividend alternative of new ADSs. Particulars of these arrangements will be mailed to holders on or about 2 September 2008. Elections must be received by the depositary on or before 18 September 2008. Alternatively, the cash dividend may be invested in additional ADSs for participants in the dividend reinvestment plan operated by the depositary.

HSBC Holdings ordinary shares will be quoted ex-dividend in London, Hong Kong, Paris and Bermuda on 20 August 2008. The ADSs will be quoted ex-dividend in New York on 20 August 2008.

The Overseas Branch Register of shareholders in Hong Kong will be closed for one day, on Friday 22 August 2008. Any person who has acquired shares registered on the Hong Kong Branch Register but who has not lodged the share transfer with the Hong Kong Branch Registrar should do so before 4.00 pm on Thursday 21 August 2008 in order to receive the second interim dividend for 2008, which will be payable on 8 October 2008. Transfers may not be made to or from the Hong Kong Overseas Branch Register while that Branch Register is closed.

Any person who has acquired shares registered on the Principal Register in the United Kingdom but who has not lodged the share transfer with the Principal Registrar should do so before 4.00 pm on Friday 22 August 2008 in order to receive the dividend.

Any person who has acquired shares registered on the Overseas Branch Register of shareholders in Bermuda but who has not lodged the share transfer with the Bermuda Branch Registrar should do so before 4.00 pm on Friday 22 August 2008 in order to receive the dividend.

Transfers of American Depositary Shares must be lodged with the depositary by 12 noon on Friday 22 August 2008 in order to receive the dividend.

6Proposed third interim dividend for 2008

The Board has adopted a policy of paying quarterly dividends on the ordinary shares. Under this policy it is intended to have a pattern of three equal interim dividends with a variable fourth interim dividend. It is envisaged that the third interim dividend for 2008 will be US$0.18 per ordinary share. The proposed timetable for the third interim dividend for 2008 payable on the ordinary shares is:

Announcement	3 November 2008
American Depositary Shares quoted ex-dividend in New York	19 November 2008
Shares quoted ex-dividend in London, Hong Kong, Paris and Bermuda	19 November 2008
Record date and closure of Hong Kong Overseas Branch Register of shareholders for one day	21 November 2008
Payment date	14 January 2009

7Final results and fourth interim dividend for 2008

The results for the year to 31 December 2008 will be announced on Monday 2 March 2009. It is intended that any fourth interim dividend for 2008 that is announced on that date would be payable on 6 May 2009 to shareholders on the Register on 20 March 2009. HSBC Holdings ordinary shares would be quoted ex-dividend in London, Hong Kong, Paris and Bermuda on 18 March 2009. The American Depositary Shares would be quoted ex-dividend in New York on 18 March 2009.

8Corporate governance

HSBC is committed to high standards of corporate governance.

HSBC Holdings has complied throughout the six months to 30 June 2008 with the applicable code provisions of the Combined Code on Corporate Governance issued by the Financial Reporting Council and the Code on Corporate Governance Practices in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The Board of HSBC Holdings has adopted a code of conduct for transactions in HSBC Group securities by Directors that complies with The Model Code in the Listing Rules of the Financial Services Authority and with The Model Code for Securities Transactions by Directors of Listed Issuers ('Hong Kong Model Code') set out in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, save that The Stock Exchange of Hong Kong Limited has granted certain waivers from strict compliance with the Hong Kong Model Code, primarily to take into account accepted practices in the UK, particularly in respect of employee share plans. Following specific enquiry, each Director has confirmed he or she has complied with the code of conduct for transactions in HSBC Group securities throughout the period.

There have been no material changes to the information disclosed in the Annual Report and Accounts 2007 in respect of the number and remuneration of employees, remuneration policies and share option plans. At the 2008 Annual General Meeting shareholders approved amendments to the rules of the HSBC Share Plan under which Performance Share and Restricted Share awards are made. 

9Telephone and online share dealing service

For shareholders on the Principal Register who are resident in the UK, Channel Islands or Isle of Man with a UK, Channel Islands or Isle of Man postal address, and who hold an HSBC Bank personal current account, the HSBC InvestDirect sharedealing service is available for buying and selling HSBC Holdings ordinary shares. Details are available from: HSBC InvestDirect, Exchange Place, Poseidon Way, Leamington Spa, Warwickshire CV34 6BY, UK, telephone: 08456 080 848, Overseas, telephone: + 44 (0) 1926 834055, Textphone: 18001 08456 88 877, web: www.hsbc.co.uk/shares.

10Stock codes

HSBC Holdings plc ordinary shares trade under the following stock codes:

London Stock ExchangeHSBA

Hong Kong Stock Exchange5

New York Stock Exchange (ADS)HBC

Euronext ParisHSB

Bermuda Stock ExchangeHSBC

11Copies of the Interim Report 2008 and shareholder enquiries and communications

Further copies of the Interim Report 2008 may be obtained from Group Communications, HSBC Holdings plc, 8 Canada Square, London E14 5HQ, United Kingdom; from Group Communications (Asia), The Hongkong and Shanghai Banking Corporation Limited, 1 Queen's Road Central, Hong Kong; from Internal Communications, HSBCߛNorth America, 26525 North Riverwoods Boulevard, Mettawa, Illinois 60045, USA; or from the HSBC website, www.hsbc.com.

Shareholders may at any time choose to receive corporate communications in printed form or to receive a notification of their availability on HSBC's website. To receive future notifications of a corporate communication's availability on HSBC's website by email, or revoke or amend an instruction to receive such notifications by email, go to www.hsbc.com/ecomms. If you received a notification of this document's availability on HSBC's website and would like to receive a printed copy, or would like to receive future corporate communications in printed form, please write to the appropriate Registrars at the address given below. Printed copies will be provided without charge.

Any enquiries relating to your shareholding, for example transfers of shares, change of name or address, lost share certificates or dividend cheques, should be sent to the Registrars:

Principal Register	Hong Kong Overseas Branch Register	Bermuda Overseas Branch Register
Computershare Investor  Services PLC PO Box 1064 The Pavilions Bridgwater Road Bristol BS99 3FA United Kingdom Telephone: 44 (0) 870 702 0137 Email: [email protected]	Computershare Hong Kong Investor Services Limited Hopewell Centre,  Rooms 1806-1807, 18th Floor 183 Queen's Road East Hong Kong Telephone: 852 2862 8555 Email: [email protected]	Corporate Shareholder Services The Bank of Bermuda Limited 6 Front Street Hamilton HM 11 Bermuda Telephone: 1 441 299 6737 Email: [email protected]

Any enquiries relating to ADSs should be sent to the depositary:

BNY Mellon Shareowner Services

PO Box 358516

Pittsburgh

PA 15252-8516

USA

Telephone (US): 1 877 283 5786

Telephone (international): 1 201 680 6825

Website: www.bnymellon.com/shareowner

Email: [email protected]

Any enquiries relating to shares held through Euroclear France, the settlement and central depositary system for Euronext Paris, should be sent to the paying agent:

HSBC France

103, avenue des Champs Elysées

75419 Paris Cedex 08

France

Telephone: 33 1 40 70 22 56

A Chinese translation of this and future documents may be obtained on request from the Registrars. Please also contact the Registrars if you have received a Chinese translation of this document and do not wish to receive such translations in the future.

Persons whose shares are held on their behalf by another person may have been nominated to receive communications from HSBC in accordance with section 146 of the UK Companies Act 2006 ('nominated persons'). The main point of contact for nominated persons remains the registered shareholder (for example your stockbroker, investment manager, custodian or other person who manages the investment on your behalf). Any changes or queries relating to nominated persons' personal details and holding (including any administration thereof) must continue to be directed to the registered shareholder and not HSBC's Registrars. The only exception is where HSBC, in exercising one of its powers under the UK Companies Act 2006, writes to nominated persons directly for a response.

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