30 September 2002

HANG SENG BANK RECEIVES APPROVAL TO
OFFER INTERNET BANKING SERVICES IN MAINLAND CHINA

Hang Seng Bank has obtained approval from the People's Bank of China for its Mainland branches to offer Personal e-Banking services to local customers and expatriates in mainland China.

Convenient online banking services such as account enquiries, transfers, time deposits and rate enquiries will be offered to customers. Mr Vincent Cheng, the Bank's Vice-Chairman and Chief Executive, said: "We are very pleased that the People's Bank of China has granted us the approval. It is a major step forward in our plan to provide convenient and quality banking services to customers in the Mainland via the internet." Founded in 1933, Hang Seng Bank, a principal member of the HSBC Group and the second largest listed bank in Hong Kong in terms of market capitalisation, operates 158 branches and automated banking centres in Hong Kong; branches in Guangzhou, Shanghai, Shenzhen and Fuzhou; and representative offices in Beijing, Xiamen and Taipei. With consolidated assets of HK$470.6 billion at the end of June 2002, the Bank reported a profit attributable to shareholders of HK$5.22 billion for the first half of 2002, and more than HK$10 billion for 2001. For further information on Hang Seng, please visit the Bank's website at www.hangseng.com.

Note: Personal e-Banking services to be offered in mainland China include:

• Account enquiries: Check the balances and transaction history of all of customer's own accounts with the Bank's Mainland branches, including savings and time deposits and loan accounts.

• Transfers: Include immediate transfer, forward dated transfer up to 60 days in advance, and recurring transfer.

• Time deposits: Place new time deposit and set up/change maturity instruction.

• Rate enquiries: Enquire about deposit interest rates and major foreign exchange rates against Renminbi.

• Customer services: Include changing e-Banking password, requesting statement, updating personal information, and making banking services enquiries via e-mail.