Hong Kong - Chinese auctioneer Poly Auction has called off a police search for the missing painting Snowy Mountain, and said it would take full responsibility for the incident, reported Oriental Daily News today.

The painting was believed to have been dumped in a landfill on Tuesday by accident, a day after it was auctioned off for HK$28.75 million (S$4.63 million), and police were preparing to search the site, said the report. But the auctioneer withdrew its police report on Wednesday.

The auctioneer apologised to the painter, Cui Ruzhuo, and the owner, a friend of Cui's, and said it would try to find the painting as soon as possible, or else take full responsibility for the loss, reported Oriental.

Poly Culture, the parent company of the auctioneer, said that the auction is covered by insurance and that compensation will be processed in accordance with Hong Kong laws.