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					                                  UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                                               Washington, D.C. 20549
                                           ____________________________

                                                  FORM 8-K
                                               CURRENT REPORT
                                          Pursuant to Section 13 or 15(d) of
                                         The Securities Exchange Act of 1934



                                             Date of Report: July 30, 2007
                                           ____________________________

                                            Commission file number 1-8198


                                 HSBC Finance Corporation
                                  (Exact name of registrant as specified in its charter)


                            Delaware                                                 86-1052062
                   (State or other jurisdiction                                   (I.R.S. Employer
                        of incorporation)                                        Identification No.)



                      2700 Sanders Road,
                   Prospect Heights, Illinois                                          60070
                     (Address of principal                                           (Zip Code)
                       executive offices)

                                                    (847) 564-5000
                                  Registrant’s telephone number, including area code




Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction A.2.below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Solicitation material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01. Regulation FD Disclosure.



This Form 8-K contains slides in Exhibit 99 pertaining to the financial results of HSBC Finance Corporation for the
six months ended June 30, 2007.

The information included in the slides with respect to HSBC Finance Corporation is presented on an International
Financial Reporting Standards (“IFRSs”) Management Basis. IFRS is comprised of accounting standards issued by
the International Accounting Standards Board and its predecessor body and interpretations issued by the International
Financial Reporting Interpretations Committee and its predecessor body. IFRS Management Basis results are IFRS
results that assume that mortgage and private label receivables transferred to HSBC Bank USA, N.A., an affiliate of
HSBC Finance Corporation, have not been sold and remain on the HSBC Finance Corporation balance sheet.

HSBC Finance Corporation has filed its Quarterly Report on Form 10-Q for the period ended June 30, 2007
contemporaneously with this Form 8-K. The Form 10-Q is prepared on a U.S. GAAP basis with segment results
prepared on an IFRS Management Basis

Item 9.01. Financial Statements and Exhibits.



        (a)      Financial Statements of Businesses Acquired.

                 Not applicable.

        (b)      Pro Forma Financial Information.

                 Not applicable.

        (c)      Shell Company Transactions.

                 Not applicable.

        (d)      Exhibits

                  Exhibit No.         Description

                     99               HSBC Finance Corporation IFRS Management Basis 2Q 2007 results.




                                                          2
                                                  SIGNATURES


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 hereunto duly authorized.

                                                 HSBC FINANCE CORPORATION
                                                 (Registrant)

                                                 By:          /s/ Patrick D. Schwartz
                                                 Name:        Patrick D. Schwartz
                                                 Title:       Vice President and Deputy General
                                                              Counsel – Corporate




Dated: July 30, 2007


                                                EXHIBIT INDEX


   Exhibit No.         Description

      99               HSBC Finance Corporation IFRS Management Basis 2Q 2007 results.




                                                          3
H1 2007 Results
HSBC Finance Corporation
IFRS Management Basis
Disclosure Statement

This presentation, including the accompanying slides and subsequent discussion, contains certain forward-looking
information with respect to the financial condition, results of operations and business of HSBC Holdings plc and HSBC
Finance Corporation. This information represents expectations or beliefs concerning future events and is subject to
unknown risks and uncertainties. This information speaks only as of the date on which it is provided. Additional detailed
information concerning important factors that could cause actual results to differ materially is available in the HSBC
Holdings plc Annual Report, and the HSBC Finance Corporation Annual Report on Form 10-K, each for the year ended
31 December 2006. Please further be advised that Regulation FD prohibits HSBC representatives from answering certain,
specific questions during the Q&A session. You may get copies of the HSBC Finance Corporation document referred to
above free by visiting EDGAR on the SEC Web site at www.sec.gov.
These materials do not constitute an offer to sell, or the solicitation of an offer to buy, any security of HSBC Finance
Corporation or any other issuer.
HSBC Holdings plc reports financial results in accordance with International Financial Reporting Standards (“IFRSs”).
IFRSs comprise accounting standards issued by the International Accounting Standards Board and its predecessor body
and interpretations issued by the International Financial Reporting Interpretations Committee and its predecessor body.
All amounts, unless otherwise stated, represents IFRS management basis of accounting.
IFRS Management Basis assumes that the mortgages and private label customer loans transferred to HSBC’s US banking
subsidiary, HSBC Bank USA, N.A. (“HSBC Bank USA”), have not been sold and remain on our balance sheet.
Such customer loans continue to be managed and serviced by HSBC Finance Corporation without regard to ownership.


                                                                                                                            2
HSBC Finance Corporation – Financial Results


  US$m                                                                                                                                              % Change
                                                           H1 2006                     H2 2006                    H1 2007                    vs H1 06                   vs H2 06
  Net operating income before loan                              $7,970                     $7,793                     $8,227                       3.2%                        5.6%
  impairment charges

  Loan impairment and                                           (2,250)                    (4,772)                    (4,073)                   (81.0%)                      14.6%
  other related charges

  Net operating income                                           5,720                       3,021                      4,154                   (27.4%)                      37.5%


  Total operating expenses                                      (2,919)                    (3,003)                    (3,040)                     (4.1%)                     (1.2%)


  Profit before tax                                              2,801                          18                      1,114                   (60.2%)                         nmf


  Cost efficiency ratio                                         36.6%                       38.5%                      37.0%                    (40) bps                    150bps


  Customer Loans & Advances                                   174,339                     182,520                    178,079                       2.1%                      (2.4%)
  (as at period end)

Note: The figures above are presented on an International Financial Reporting Standards (“IFRS”) Management basis. See Note 11 “Business segments” of Form 10-Q for the period ended 30
June 2007, for a reconciliation of IFRS to US GAAP.


nmf: not meaningful


                                                                                                                                                                                      3
HSBC Finance Corporation – Financial Results (continued)
H107 Highlights

• Higher net operating income before loan impairment charges, consistent with loan growth, for H107
  compared to H106
  – Lower Mortgage Services loans were more than offset by growth in branch based real estate portfolios and card
    business
• Loan impairment charges excluding Mortgage Services for H107 compared to H106 increased $1.3 bn
  as a result of the following:
  – Unusually favorable credit environment, extremely low bankruptcy and strong economic conditions in H106
  – Growth and seasoning of portfolio
• Mortgage Services’ portfolio has continued to decrease as planned with tighter underwriting, increased
  collections, select sales of assets ($2.7bn in H107 which includes $2.2bn in second quarter of 2007), and
  the decision to cease correspondent channel acquisitions
• Operating expenses increased 4% compared to H106 primarily to support loan growth in certain
  portfolios, including higher marketing expenses, investment in co-brand card initiatives and increased
  collection activities
• Cards and U.S. branch based mortgage businesses performed well and in line with expectations


                                                                                                                    4
HSBC Finance Corporation
Loan Impairment Charges
US$bn
  5.0                      4.8

  4.5
                                             4.1
  4.0

  3.5                                              3.3
                                 3.0
  3.0

  2.5    2.3
               2.0
  2.0                                  1.8
                                                                    Total
  1.5

  1.0                                                    0.8        Excluding Mortgage Services
  0.5                0.3
                                                                    Mortgage Services
  0.0
            H1 2006          H2 2006           H1 2007

• Excluding Mortgage Services, loan impairment charges for H107 were above H206, primarily due to
  bankruptcies returning to normalized levels and growth and seasoning in the Cards and Consumer
  Lending portfolios
• H106 significantly benefited from a strong economy, benign credit environment and low bankruptcies
                                                                                                       5
HSBC Finance Corporation
Strategic Initiatives during first half 2007

• Strategic repositioning of the Mortgage Services business
  − Discontinued Correspondent Channel acquisitions in Mortgage Services
• Connecting Mortgage Services and CIBM in portfolio management strategy
• Strengthened structure with Chief Operating Officer role extended to cover credit risk organisation
• Discontinuation of pre-season and pre-file tax products by Taxpayer Financial Services
  − Result of on going review to ensure all products and services offered align with our brand promise, focused on
    offering consumers the most value-added products
• Non-binding agreement to sell UK Insurance operations
  − Result of continuing evaluation and focus on strategic positioning of core businesses
• Progress on cross-sell and direct-to-consumer internet initiatives




                                                                                                                     6
HSBC Finance Corporation
Profit before tax

US$bn
  3.0    2.8
               2.5
  2.5

  2.0
                                 1.5                1.6
  1.5
                                              1.1
                                                                 Total
  1.0

  0.5                0.3                                         Excluding
                           0.0
  0.0                                                            Mortgage Services
  -0.5
                                                          -0.5
                                                                 Mortgage Services
  -1.0

  -1.5
                                       -1.5
  -2.0
           H1 2006           H2 2006            H1 2007




• H106 benefited from unusually favorable credit environment and economic conditions
• Lower profit before tax excluding Mortgage Services compared to H106 as a result of increased
  impairment charges as credit environment trends toward normalized levels
• Profit before tax excluding Mortgage Services consistent with H206

                                                                                                  7
HSBC Finance Corporation
2+ Delinquency Ratio

(%)
 7
                                                                                          6.21%
 6

 5                                                        4.65%          4.73%
                                         4.40% 4.31%                              4.29%
                 3.94%                                                                                                  Total
 4       3.63%

                          2.88%                                                                                         Excluding Mortgage Services
 3

 2                                                                                                                      Mortgage Services

 1

 0
               H1 2006                         H2 2006                          H1 2007
• 2+ Delinquencies excluding Mortgage Services consistent with H206
• Magnitude of delinquency ratio increase in Mortgage Service reflects seasoning of portfolio in addition
  to portfolio declines through run-off and sales
Note: See “Credit Quality” in MD&A of Form 10-Q for the period ended 30 June 2007 for delinquency information reported on a U.S. GAAP basis.
Delinquency data excludes mortgages held for sale (MHS). Note that information reported at March 31, 2007 included MHS delinquencies. All data above has been adjusted to exclude MHS
loans as they are classified as Trading Assets under IFRS.


                                                                                                                                                                                   8
HSBC Finance Corporation
Real Estate Secured 2+ Delinquency

                                3.0                                                                                                             9.00
2+ Delinquency (USD Billions)




                                                                                                               2.6                                                                                                               8.01
                                                                                                                                                8.00
                                                                                      2.3          2.3         0.7
                                                                                                                                                7.00                                                                6.50
                                                                          1.9         0.6          0.6




                                                                                                                           2+ Delinquency (%)
                                2.0                                                                                                                                                                                              5.76
                                                                                                                                                6.00
                                                              1.5         0.4                                  1.9
                                      1.3         1.3                                 1.7          1.7               1.3                        5.00                                                                4.53
                                                              0.3         1.5                1.2         1.2
                                      0.2   1.0   0.2   0.9         0.9         1.0                                                             4.00
                                1.0   1.1                     1.2                                                                                                             3.04
                                                  1.1
                                                                                                                                                3.00                                                                2.36         2.47
                                                                                                                                                                              2.32
                                                                                                                                                2.00
                                                                                                                                                                              2.08
                                0.0                                                                                                             1.00
                                       Q4 05      Q1 06        Q2 06      Q3 06        Q4 06        Q1 07       Q2 07                            -
                                                                                                                                                       Q4 05       Q1 06      Q2 06        Q3 06           Q4 06   Q1 07        Q2 07



                                       2+ MS First Lien        2+ MS Second Lien            2+ Branch R/E secured                                        2+ MS 1st Lien (%)           2+ MS 2nd Lien (%)           2+ Branch R/E secured (%)



• 2005 and 2006 vintages in Mortgage Services continue to season. The cessation of correspondent
  acquisitions and portfolio sales have impacted the delinquency ratio significantly. As the portfolio
  declines, the delinquency ratio will continue to increase
• Slight increase in 2+ delinquencies for Branch Real Estate secured portfolio due to seasoning of growing
  portfolio
                                      − 2+ delinquency ratio also impacted by slowing housing market, changing credit cycle and bankruptcy filings
                                        returning to normalized levels
Note: See “Credit Quality” in MD&A of Form 10-Q for the period ended 30 June 2007 for delinquency information reported on a U.S. GAAP basis.
Delinquency data excludes mortgages held for sale (MHS). Note that information reported at March 31, 2007 included MHS delinquencies. All data above has been adjusted to exclude MHS
loans as they are classified as Trading Assets under IFRS.


                                                                                                                                                                                                                                               9
HSBC Finance Corporation
Mortgage Services Impairment Allowance

Six months ended June 30, 2007

US$m
2,500


                                                                (27)
               0
2,000

                                                 760
                             (680)

1,500



             2,043                                                        2,096
1,000



 500



   0
           31-Dec-06    Net Charge-offs   Net Loan Impairment   Other   30-Jun-07
                                                Charge


                                                                                    10
HSBC Finance Corporation
Customer Loans and Advances

US$bn
200.0
                                                          177.5           182.5           179.9            178.1
                                           174.3
           163.8          168.5
                                                                          21.6            21.4             21.4
                                            21.3           21.5
160.0                      20.9
           20.8                                            12.7           12.8            12.9             13.0
                           12.1             12.4
           11.9                                            19.3           20.6            19.5             19.8
                           18.4             19.0
120.0      19.7
                                            25.7           26.3           28.3            28.0             29.6
                           24.7
           25.8
 80.0
                           43.1             44.4           46.2           49.7            51.5
           41.3                                                                                            52.9

 40.0
           44.3            49.3             51.5           51.5           49.5            46.6             41.4

  0.0
           Q4 05          Q1 06            Q2 06          Q3 06           Q4 06           Q1 07           Q2 07

  Mortgage Services     Branch Real Estate Secured   Credit Cards   Private Label Cards   Motor Vehicle Finance    Other


• Strategic reduction in Mortgage Services loan portfolio with growth in all other key portfolios
  considering seasonality
• Reduction in Mortgage Services portfolio consistent with decision to discontinue correspondent channel
  acquisitions and select sales of assets
  – Select asset sales of $2.7 billion during H107 (including $2.2 billion during the second quarter)

                                                                                                                           11
Mortgage Services
Loans by vintage and type

December 2006                                                                                                                                                                       June 2007
                                                                                 2nd Lien ARM

             US$3.0bn                        49%                          39%            5% 7% 7% 5%              37%                            51%             0%    US$2.3bn



                                                                                2nd Lien Fixed

             US$7.1bn                  33%                          57%                  5% 5% 5% 5%                    55%                            34%      1%     US$6.0bn



                                                                                 1st Lien ARM

           US$24.1bn                 30%                      46%                  16%        8% 7%    12%                    48%                       33%      0%    US$16.7bn


                                                                                1st Lien Fixed

           US$15.3bn                 27%             23%                32%             18%        16%            27%               20%           29%         8%       US$16.4bn


                              0            20           40           60            80    100%                20           40              60           80       100%

= US$49.5bn                                                                                                                                                                      = US$41.4bn
                                                             Pre 2004               2004              2005               2006                  2007


Note: Prior period vintage information has been recalibrated to reflect the loan origination date rather than the recognized loan purchase date, as it best indicates the origination date of the
mortgage in each period.


                                                                                                                                                                                                    12
  HSBC Finance Corporation
  Mortgage Services Loans – Vintages

   Vintages (US$bn)

                                                                                       December 2006                                    March 2007                                  June 2007

        2007                                                                                                                                          0.6                                       1.4

        2006                                                                                             15.2                                       15.0                                      13.5
        2005                                                                                             19.8                                       17.9                                      15.5
        2004                                                                                               9.3                                        8.3                                       6.7
        Pre 2004                                                                                           5.2                                        4.8                                       4.3
                                                                                                         49.5                                       46.6                                      41.4


  • Substantial reduction of 2005 vintages reflects actions taken within the Correspondent Channel




Note: Prior period vintage information has been recalibrated to reflect the loan origination date rather than the recognized loan purchase date, as it best indicates the origination date of the
mortgage in each period.

                                                                                                                                                                                                      13
HSBC Finance Corporation
Adjustable Rate Mortgages – ARM Resets

US$bn

 12.0
        10.7
               9.9
 10.0

                       As of December 31, 2006   As of June 30, 2007
  8.0

                                                   5.8
  6.0                        5.1                         5.3


                                   3.8                               4.1               Total
  4.0
                                                                           3.0
                                                                                       Mortgage Services
  2.0                                    1.3
                     0.8                                                         1.1   Consumer Lending
                                                               0.5

  0.0
          2007                2008                   H207              2008



                                                                                                           14
HSBC Finance Corporation
Ongoing Areas of Focus

• US economic conditions, particularly unemployment levels, bankruptcy filings, housing market and
  interest rates
• Impact of adjustable rate mortgage resets
• Seasoning of growing Credit Card and Retail Branch based Real Estate portfolios




                                                                                                     15

				
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