Statement from Knight Vinke concerning HSBC Holdings plc

New York, NY, 23 November 2007. We note with interest HSBC’s revelation yesterday evening that it consulted 50 of its top shareholders with respect to the details of the HSBC 2005 Share Plan (the “Plan”) prior to the Plan being submitted to shareholders for approval at the AGM.

Having recently met with many of HSBC’s largest shareholders, specifically to discuss the Plan and other matters, it is absolutely clear to us that many of HSBC’s largest shareholders were not made aware of the full details of the scheme which permits substantial performance-related payments to be made for no performance at all.

Once again, this raises important issues about governance at HSBC.

We call on HSBC to publish the consultation documents that were used in the discussions with the 50 institutional shareholders (including the worked example), the minutes of any Remuneration Committee meetings since 2004 that pertain to the Plan and the advice given to the Board by Towers Perrin, consultants to the Remuneration Committee, relating to the Plan. We also call on HSBC to resubmit the Plan to its shareholders at next year’s AGM, together with a full and complete explanation of its terms, as the Notice to the 2005 AGM was insufficient and the scheme is therefore void.

About Knight Vinke Asset Management

Knight Vinke Asset Management is an institutional fund manager which specialises in the linkage between value creation and better governance in large cap public companies. Its clients include some of the world’s largest public pension funds and institutional investors. Knight Vinke is an institutional shareholder of HSBC.

This announcement is not intended, and shall not be construed, as an offer, solicitation, invitation or inducement to buy or sell securities or interests therein or other investments.

For further information, please contact:

Martin Forrest, Director of Communications
Knight Vinke Asset Management
T: +377 93 30 06 36
forrest@kvamllc.com

David Trenchard/John Sunnucks
Tulchan Communications
T: +44 20 7353 4200
knightvinke@tulchangroup.com