HSBC, the UK-listed bank, is considering a bid for a major Chinese bank to reinforce its presence in the country as other foreign lenders pull back, according to the Sunday Telegraph.

The newspaper said HSBC wants to buy a majority stake in one of China's big three lenders - ICBC, Bank of China, or China Construction Bank.

Any deal would have to wait until China relaxes current rules limiting foreign banks' stake in local lenders to 20 per cent, and is expected to involve an asset swap with HSBC's Hong Kong operation, as well as the sale of its holding in China's Bank of Communications.

Last year, HSBC’s chief executive, Mike Geoghegan, announced he was moving permanently to be based in Asia, signifying where HSBC sees its future core earnings centre.

The newspaper added that HSBC did not comment on its report.