HSBC France € 20,000,000,000 Euro Medium Term Note Programme

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Set out below is a brief description of certain risks relating to the Notes generally:
Modification of the Conditions
The Noteholders will, in respect of all Tranches in any Series, be grouped automatically for the defence of their
common interests in a masse, as defined in Condition 10, and a General Meeting can be held. The Terms and
Conditions permit in certain cases defined majorities to bind all Noteholders including Noteholders who did not
attend and vote at the relevant General Meeting and Noteholders who voted in a manner contrary to the majority.
The General Meeting may deliberate on any proposal relating to the modification of the Conditions including
any proposal, whether for arbitration or settlement, relating to rights in controversy or which were the subject of
judicial decisions, as more fully described in Condition 10.
EU Savings Directive
On 3 June 2003, the Council of the European Union adopted directive 2003/48/EC on taxation of savings income
(the "EU Savings Directive"). Member States are required from 1 July 2005 to provide the tax authorities of
another Member State with, inter alia, details of payments of interest within the meaning of the EU Savings
Directive (interest, products, premiums or other debt income) made by a paying agent located within its
jurisdiction to or for the benefit of an individual resident in another Member State (the "Disclosure of
Information Method").
For these purposes, the term "paying agent" is defined widely and includes in particular any economic operator
who is responsible for making interest payments, within the meaning of the EU Savings Directive, for the
immediate benefit of individuals.
However, throughout a transitional period, certain Member States (the Grand-Duchy of Luxembourg, Belgium
and Austria), instead of using the Disclosure of Information Method, will operate a withholding system in
respect of such payments, unless the beneficiary elects for the Disclosure of Information Method.
The rate of such withholding tax equals 15% during the first three years from the date of implementation of the
EU Savings Directive, 20% during the subsequent three years and 35% until the end of a transitional period,
which will end if and when the European Union enters into agreements on exchange of information upon request
with a number of third countries and territories (including, inter alia, the United States, Switzerland,
Liechtenstein, San Marino, Monaco and Andorra).
This Directive has been implemented in French law under Article 242 ter of the French Code général des impôts.
Change of law
The Terms and Conditions of the Notes are based on French law in effect as at the date of this Base Prospectus.
No assurance can be given as to the impact of any possible judicial decision or change to French law or
administrative practice after the date of this Base Prospectus.
2.4 Risks related to the market generally
Set out below is a brief description of the principal market risks, including liquidity risk, exchange rate risk,
interest rate risk and credit risk:
Market value of the Notes
The market value of the Notes will be affected by the creditworthiness of the Issuer and a number of additional
factors, including the value of the reference assets or an index, including, but not limited to, the volatility of the
reference assets or an index, or the dividend on the securities taken up in the index, market interest and yield
rates and the time remaining to the maturity date.
The value of the Notes, the reference assets or the index depends on a number of interrelated factors, including
economic, financial and political events in France or elsewhere, including factors affecting capital markets
generally and the stock exchanges on which the Notes, the reference assets, the securities taken up in the index,
or the index are traded. The price at which a Noteholder will be able to sell the Notes prior to maturity may be at
a discount, which could be substantial, from the issue price or the purchase price paid by such purchaser. The