Notice on HSBC China Debit Card "Daily Cumulative Spending Limit" Setting/Adjustment

Dear Customer:

Thank you for your continued support to HSBC Bank (China) Company Limited (the "Bank" or "We").

To ensure the safety of debit card services and meet the customization requirement, we will arrange a card system upgrade recently. With effect from 1 May 2010, a Daily Cumulative Spending Limit (the “Limit”) will be set for all debit cards issued by the Bank. Your daily cumulative amount of debit card spending (in both Mainland China and Overseas) will not be able to exceed the Limit. This approach aims to further protect our cardholders from potential security threats during the use of the debit card.

From 1 May 2010, all customers will be requested to set his/her own Limit during new card application. A default Limit of RMB 50,000 (subject to the Bank’s adjustment from time to time) will be applied to the customers who fail to do so. This default Limit is also applied to our existing debit cardholders (for the cards issued by the Bank before 1 May 2010) as well. Limit adjustment by cardholder him/herself is permitted, which is subject to the Bank's restriction. This adjustment will have no impact to other debit card services we provided. We have updated Debit Card Terms and Conditions (T&C) with the new features. The new T&C will be effective from 1 May 2010. Please click here to read more details.

For more details, please check from:

• HSBC China Personal Internet Banking Announcement (if you have applied Personal Internet Banking service)
• Your personal relationship manager
• HSBC China 24H Service Hotline (can be found on the back of your debit card)

Yours faithfully,

HSBC Bank (China) Company Limited
30 March 2010