This will be HSBC's second round of layoffs in the region. In September, HSBC said it was cutting 1,100 jobs in its investment banking operation, or 4 per cent of the unit's total, including about 100 in Hong Kong, where the bank's Asian unit is based.

The 450 Hong Kong jobs that will be cut represent 2 per cent of the bank's workforce in the city.

All the affected staff had been notified of the news by Monday night, a spokesman for the bank's Hong Kong operations told wires agencies.

'Because of the uncertainties ahead and the deteriorating external economy, we have to be cautious of the operating environment next year,' she said.

'Under the circumstances, we had to make a review.' The spokesman refused to give a breakdown on the job cuts and added that the bank would try to help affected staff through internal redeployment where possible.

But an internal memo sent to staff from the company's executive director Peter Wong on Monday described the redundancies as 'across all customer groups and some bank office functions', according to Dow Jones Newswires.

A spokesman for the Hong Kong Banking Employees Association said he was concerned that the layoffs would encourage other banks to follow suit, broadcaster TVB reported.

HSBC employs around 330,000 people worldwide, including about 20,000 staff in Hong Kong.

The bank refused to confirm earlier reports which said that more than 100 jobs in its Hong Kong office had already been cut.

Singapore's DBS Group, South-east Asia's biggest bank by assets, said earlier it would reduce its workforce by six per cent, or 900 staff, by the end of this month, to trim costs after reporting a slump in third quarter net profit.

The group said its staff in Singapore and Hong Kong would be the primary targets for the cuts. -- REUTERS, AFP