9 August 2002

HANG SENG BANK LAUNCHES RENMINBI BUSINESS
AT RELOCATED SHANGHAI BRANCH

Hang Seng Bank today launched renminbi services at its relocated Shanghai branch. The renminbi services, including savings and time deposits, cheque account, loans, remittance and foreign exchange services, are offered to foreign passport holders; citizens of the Hong Kong Special Administrative Region (SAR), Macau SAR and Taiwan; and foreign-invested enterprises. The Shanghai branch was just relocated to China Development Bank Tower, 500 Pudong South Road in Pudong district. The over 1,500-square-metre branch provides a comfortable banking environment to its customers. The Bank's Shanghai and Guangzhou branches today also launched Prestige Banking Account. Prestige Banking Centres have been set up in the two branches, allowing Customer Relationship Managers to offer personalised financial services to customers. Mr Vincent Cheng, the Bank's Vice-Chairman and Chief Executive, said: "The launch of RMB services and the expansion of our Shanghai branch marks major milestones for the Bank. We are committed to developing the Mainland market through offering a wide range of financial services to meet the needs of the Mainland customers." 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 155 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 the full year of 2001. For further information on Hang Seng, please visit the Bank's website at www.hangseng.com.

Note: 1. Please refer to the attached backgrounder on the development of the Bank's business in mainland China. 2. The minimum opening balance of Prestige Banking Account is HK$500,000 or its equivalent.




Backgrounder on Mainland China Business of Hang Seng Bank Hang Seng Bank established its foothold in the Mainland in 1985 when it opened its first representative office in Shenzhen. A branch was opened in Guangzhou in 1995, spearheading the Bank's business expansion in South China. Hang Seng was the first bank in Hong Kong to gain approval to open a branch in Shanghai after the territory's reunification with China in 1997. Foreign Currency Services The Bank's Shanghai and Guangzhou branches received approval from the People's Bank of China to offer foreign currency banking services to mainland Chinese citizens and enterprises in April 2002 and the services were launched in July. In May, similar approval was granted to the Shenzhen branch which rolled out foreign currency banking services on 5 August. ezLink Financial Services To help customers commuting between the Mainland and Hong Kong to manage their finances from the Mainland, the Bank launched ezLink Financial Services in February. Other Expansion Plans The Bank has applied to open a branch in Nanjing and a sub-branch in Puxi, to upgrade its Beijing representative office to a branch, and to operate personal internet banking services in the Mainland. The investment and insurance arms of Hang Seng have started establishing their presence in the Mainland. Hang Seng Securities Limited obtained approval to open a representative office in Shanghai in June 2002, while Hang Seng Investment Management Limited has applied to open a representative office in Shenzhen. Hang Seng Insurance Company Limited opened a representative office in Shenzhen in April 2001.