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China's Bank of Communications on Thursday named Yang Dongping, head of its Hong Kong branch, as its new chief risk management officer, one day after a state audit of its 2005 books revealed "possible economic crimes".

Yang, 50, has been working in the management of the Hong Kong branch since September 2003.

Bank of Communications, which is about 15-percent owned by HSBC Holdings Plc. , on Wednesday said a routine government audit uncovered management and operating irregularities.

In a statement, the bank said authorities were investigating "evidence of possible economic crimes" that were revealed by the audit.

The bank, which is China's fifth-largest lender, said the audit of its 2005 financial results and balance sheet found that individual branches did not comply with lending policy and financial income and expenditure regulations.

Rival Bank of China reported similar results of its own audit earlier this month, although both banks have said there was no impact on its financial results, and investors have largely shrugged off the news.

Bank of Communications, Bank of China and six other big mainland lenders were recently punished for lending money that was improperly used for stock and property investments.

Bank of Communications was also among a group of domestic and international banks punished by Beijing for breaching foreign exchange controls, the Financial Times reported on Thursday.