FORM 6-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                        Report of Foreign Private Issuer
                    Pursuant to Rule 13a - 16 or 15d - 16 of
                      the Securities Exchange Act of 1934

                           For the month of May 2005

                               HSBC Holdings plc

                              42nd Floor, 8 Canada
                        Square, London E14 5HQ, England


(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).

                          Form 20-F X Form 40-F ......

(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934).

                                Yes....... No X


(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ..............)






                               HSBC HOLDINGS PLC

                        FIRST INTERIM DIVIDEND FOR 2005

                           SCRIP DIVIDEND ALTERNATIVE

On 3 May 2005, the Directors of HSBC Holdings plc declared a first interim
dividend for 2005 of US$0.14 per ordinary share payable on 6 July 2005 to
shareholders on the Register on 20 May 2005. The dividend is payable in cash in
United States dollars, sterling or Hong Kong dollars, or a combination of these
currencies, with a scrip dividend alternative. The "Market Value" for the issue
of new shares under the scrip dividend alternative is:

                         US$15.8448 for each new share

The "Market  Value" is the United  States  dollar  equivalent  of GBP8.656,
being the average of the middle market quotations for the ordinary shares on the
London  Stock  Exchange  as derived  from the Daily  Official  List for the five
business  days  beginning on 18 May 2005 (the day on which the shares were first
quoted ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars on 6 July 2005 will
be converted from United States dollars at the forward exchange rates quoted by
HSBC Bank plc in London at or about 11.00 am on 27 June 2005. These exchange
rates will be announced to the London, Hong Kong, New York, Paris and Bermuda
stock exchanges.

Particulars of the dividend arrangements will be mailed to shareholders on or
about 1 June 2005, and elections must be received by the Registrars by 22 June
2005.


N S Black

Assistant Secretary

HSBC Holdings plc


25 May 2005


                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                               HSBC Holdings plc

                                                By:
                                                Name:  P A Stafford
                                                Title: Assistant Group Secretary
                                                Date:  25 May 2005