Eddie Wang, head of China business at HSBC's core unit Hongkong and Shanghai Banking Corp Ltd (Hongkong Bank), told Reuters in an interview the bank is bracing itself for the keener competition in China in the future by keeping costs down.

"One has to have a very competitive cost structure becausethere will be more competition," he said this week. "Localisation is a must. We are trying to get as many local people into managerial positions as possible."

Negotiators from China and the United States werecontinuing efforts in Beijing on Friday to clear the way for China to get into the WTO, whose 134 members meet in Seattle on November 30.

Little progress appears to have been made in Beijing andtime is running out for a deal setting the stage for China to join in the new round of trade negotiations expected to be launched in Seattle.

Still, some economists say China's WTO accession is just amatter of time.

More foreign banks are expected to rush into China once thecountry enters the WTO, which means it will have to open up its market to foreign investors in a broad range of sectors.

Wang said while a WTO membership for China would mean morefierce competition for the bank, the influx of foreign investors in other trades would also boost the demand for loans.