The Hong Kong Monetary Authority (HKMA) says it is not hiring an external auditor to investigate BOC Hong Kong (Holdings) as it earlier said, citing a 'misunderstanding'.

On Monday, spokespersons of the banking watchdog told the media that it would appoint an external auditor to probe BOCHK, while the bank also said it would solicit external auditors.

Yesterday, however, a HKMA spokeswoman said: 'Under Section 59 of the Banking Ordinance, the HKMA approves the appointment of the external auditor but does not itself make the appointment.