MSCI August 15 Index Preview:23 potential constituent changes for MSCI ACWI

  MSCI will announce the results of its index review on 13 August 2015 and changes will become effective after the close of business on 31 August 2015 MSCI rebalances its global equity indices on a regular basis in February, May, August and November. The Quarterly Index Reviews (QIRs), of which there are two, take place in February and August. At each index review, MSCI refreshes its universe of stocks, updates free float factors, the number of issued shares, liquidity criteria and finalises the market cap size cut-offs for different markets from which it then determines potential index changes. In order to predict potential index changes, we aim to replicate MSCI’s index review process. Our index prediction model is applied to the MSCI All Country World Index (ACWI) for large cap and mid cap stocks across 46 developed and emerging markets. Table 1: Projected changes to MSCI ACWI for August 2015 index review Region Total potential changesPotential additionsPotential deletes Inflow USD m Outflow USD mDeveloped Markets 1055 North America 000 169 -294Europe + Israel 532 1,011 -873DM Asia Pacific 523 640 -654 Emerging Markets1385 EM Asia 1275 841 -833EM EMEA 110 76 -63EM LATAM 000 34 -56MSCI ACWI 231310 Frontier Markets 202 1.5 1.5Source: HSBC estimates. Our analysis is based on the MSCI Standard Indices using data as of 01-July-2015. 2 July 2015 Equity Quantitative Analysis Index Analysis - Global Vijay Sumon* Analyst HSBC Bank plc +44 20 7991 6839 vijay.sumon@hsbcib.com Joaquim de Lima* Analyst HSBC Bank plc +44 20 7991 6836 joaquim.delima@hsbcib.com Freddie Siu* Analyst The Hongkong and Shanghai Banking Corporation Limited (HK) +852 2996 6558 freddiesiu@hsbc.com.hk View HSBC Global Research at: http://www.research.hsbc.com *Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to FINRA regulations Issuer of report: HSBC Bank plc Disclaimer & Disclosures This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it MSCI August 15 Index Preview23 potential constituent changes for MSCI ACWI  Our analysis projects 10 changes to occur in Developed Markets: 5 adds and 5 deletes, and 13 changes in Emerging Markets: 8 additions and 5 deletes  In terms of regions: EM Asia to see largest number of changes at 12, while DM Europe is expected to see the largest inflows of around USD139m Equity Quantitative Analysis Index Analysis - Global 2 July 2015 2 abcGlobal summary of adds, deletes and money flow Table 2: MSCI Developed Markets ___ Current ____ ____ New _____ WeightInflowOutflow Net flow Country / Region Adds Deletes # stock Weight # stockWeightChangeUSD (m)USD (m) USD (m) NORTH AMERICA 0 0 733 61.2%73361.1%0.0%169 (294) (125) Canada 0 0 94 3.6%943.6%0.0%0 (1) (1) USA 0 0 639 57.6%63957.6%0.0%169 (293) (124) EUROPE + MIDDLE EAST 3 2 452 25.5%45325.5%0.0%1,011 (873) 139 Austria 0 0 5 0.1%50.1%0.0%0 (1) (1) Belgium 0 0 11 0.5%110.5%0.0%0 (8) (8) Denmark 0 0 14 0.6%140.6%0.0%0 (10) (10) Finland 0 0 12 0.3%120.3%0.0%0 (5) (5) France 1 1 75 3.8%753.8%0.0%303 (165) 138 Germany 0 0 54 3.5%543.5%0.0%0 (53) (53) Ireland 0 0 4 0.1%40.1%0.0%0 (2) (2) Italy 0 0 26 0.9%260.9%0.0%0 (14) (14) Netherlands 0 0 22 1.1%221.1%0.0%0 (283) (283) Norway 0 0 9 0.2%90.2%0.0%0 (4) (