HANG SENG BANK RECEIVES APPROVAL
TO OPERATE RENMINBI BUSINESS AND EXTEND FOREIGN CURRENCY SERVICES TO MAINLAND CUSTOMERS

Hang Seng Bank has received approval from the People's Bank of China for its Shanghai branch to operate renminbi services, and for its Shanghai and Guangzhou branches to offer foreign currency services to mainland Chinese residents and enterprises.

These latest developments mark a milestone in the Bank's business expansion in the Mainland. Mr Vincent Cheng, Vice-Chairman and Chief Executive of Hang Seng Bank, said: "We are very pleased with the approval by the People's Bank of China. Hang Seng is committed to supporting mainland China's economic development through financing a variety of infrastructure, hotel, property and industrial projects for foreign-funded enterprises. With the launch of RMB services to expatriates and foreign-invested enterprises and the expansion of foreign currency services to domestic customers, we can provide more and better services in the Mainland. "Following China's accession to the WTO, the Chinese government will open the domestic banking sector in phases, with the lifting of geographical and client restrictions within five years. This will provide more business opportunities for foreign banks. Total loans and deposits of domestic financial institutions in the Mainland amounted to about RMB11,231.4 billion and RMB14,361.7 billion respectively at the end of 2001, indicating the immense opportunities on offer," Mr Cheng added. To fulfil the growing needs of customers to manage their finances in Hong Kong from the Mainland, the Bank launched ezLink Financial Services, an integrated account for customers commuting between the Mainland and Hong Kong, in February 2002. Founded in 1933, Hang Seng Bank, a principal member of the HSBC Group and the second largest listed bank in Hong Kong, operates 154 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$475 billion at the end of 2001, the Bank reported a profit attributable to shareholders of more than HK$10 billion for the year 2001. For further information on Hang Seng, please visit the Bank's website at www.hangseng.com.