HSBC Results Presentation Deck

Mainland China commercial real estate update Mainland China commercial real estate exposures 60 Mainland China commercial real estate exposures by location of parent company, $bn Exposure to mainland China ultimate parent companies Exposure to non-mainland China ultimate parent companies* Total mainland China real estate exposures Mainland China drawn risk exposure is defined as lending booked in mainland China and wholesale lending booked offshore where the ultimate parent and beneficial owner is in mainland China Our mainland China real estate exposures at 31 December 2021 were $21.3bn; comprising $17.1bn of loans and $4.2bn of guarantees Mainland China commercial real estate exposures by booking centre, $bn Mainland China Hong Kong 9.9 1.7 6.8 2.4 11.6 9.2 4Q21 16.5 4.8 21.3 ◆ 43% ($9.2bn) of exposures are onshore (booked in mainland China); 57% ($12.1bn) of exposures are offshore (booked outside of mainland China, substantially in Hong Kong) Loans and advances to customers61 Guarantees issued and others61 Total 2Q21 14.7 4.9 19.6 * Substantially all Hong Kong based multinational corporates RoW 0.4 0.1 0.5 Total 17.1 4.2 21.3 Strategy 4021 results Appendix Market conditions update Uncertainty exists for real estate developers following recent market developments in mainland China's real estate market that have reduced liquidity and increased refinancing risk ◆ This resulted in the downgrade of some previously highly-rated borrowers Downgrades have been notably concentrated amongst offshore exposures in Hong Kong; offshore exposures are typically higher risk than onshore exposures ◆ Since year end there has been more positive sentiment, however uncertainty remains ◆ A partial recovery in debt and equity prices has been observed, helped by a reduction in the PBOC policy lending rate ◆ At 31 December 2021, we have no exposure to companies in the Red category of the 3 red lines framework Lending is generally focused on Tier 1 and Tier 2 cities ◆ We continue to monitor the potential second order impacts of recent developments 50

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