HSBC has announced its intention to list in China within the next two years to tap into the vast investor potential of the world's most exciting economy.

Chinese regulators are working to change the rules to let foreign companies float in Shanghai, according to Peter Wong, HSBC's executive director for Hong Kong and mainland China, who also advises the government.

"As soon as the regulation allows it, we would like to list in China," he said. "I would probably say that within the next two to three years we will be able to do it. China is looking very hard into foreign companies listing."

The London-headquartered bank already has secondary listings in Bermuda, New York and Hong Kong, but a Chinese listing could radically alter its shareholder base. Chinese institutions have billions of dollars of excess capital and with a national savings rate of 40 percent there is a hunger for foreign stock.

Mr. Wong added that HSBC aims to increase its one-fifth stake in Bank of Communications at the earliest opportunity.

He said: "We would want management control, ideally 51 percent. But I don't foresee that happening quickly."

Current rules prohibit foreign banks from owning more than 20 percent of their Chinese rivals.

As a government adviser on financial affairs, Mr Wong has told Chinese banks to make overseas acquisitions to develop their skill sets.

He said: "The Chinese are saying, 'Our home markets have high (price earnings ratios) and we have capital. Let's buy overseas.' "