1 June 2002

HANG SENG BANK RECEIVES APPROVAL
FOR SHENZHEN BRANCH TO OFFER FOREIGN CURRENCY SERVICES TO MAINLAND CHINESE CUSTOMERS

Hang Seng Bank has received approval from the People's Bank of China for its Shenzhen Branch to offer foreign currency banking services to mainland Chinese citizens and corporations.

This follows similar approval granted to its Shanghai and Guangzhou branches in April 2002. The Bank also received approval for its Shanghai branch to operate renminbi services in the same month. 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. This will allow us to offer foreign currency banking services to mainland Chinese customers in the three major Mainland cities. It is a major step forward in our plan to develop the Mainland market." The 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. The Bank has applied to upgrade its representative office in Beijing to a branch and to open a branch in Nanjing. Founded in 1933, Hang Seng Bank, a principal member of the HSBC Group and the second largest listed bank in Hong Kong, 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$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.