Editing Tung Chee-hwa (section)

==Chief Executive==

===First term===
{{main|First term of Tung Chee-hwa as Chief Executive of Hong Kong}}
In early 1997, Tung saw his victory in the first Chief Executive election,<ref>{{cite web |last = Xavier |first = Gerry |title = Decision day brings a 10-minute replay of Tung's landslide |work = The Standard |date = 24 January 1997 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=45529&sid=&con_type=1&d_str=19970124&sear_year=1997 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051520/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=45529&sid=&con_type=1&d_str=19970124&sear_year=1997 |archive-date = 30 April 2008 }}</ref> in the voting conducted by 400 committees of [[Election Committee|electoral college]] whose members are appointed by the Chinese Government.

The government pledged to focus on three policy areas: housing, the elderly, and education.<ref>{{cite web |last = Western |first = Neil |title = Maiden policy address |work = The Standard |date = 9 October 1997 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=39561&sid=&con_type=1&d_str=19971009&sear_year=1997 |archive-url = https://web.archive.org/web/20080430051455/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=39561&sid=&con_type=1&d_str=19971009&sear_year=1997 |url-status = dead |archive-date = 30 April 2008 |access-date = 11 January 2007 }}</ref> Measures on housing included a pledge to provide 85,000 housing flats each year so as to resolve the problems of soaring property prices. The [[Asian financial crisis]] that hit Hong Kong in months after Tung took office made this objective almost immediately redundant and, in fact, it was a collapse in property prices that became a far more pressing problem in the years between 1998 and 2002.

After being appointed by the [[State Council of the People's Republic of China|State Council of China]], Tung took office on 1 July 1997. His first term was significantly – and negatively – impacted by the [[Asian financial crisis]] and there was criticism by the general public of his style of governance.   Job losses and plummeting values in the stock and property markets, combined with controversial economic policies (which were called [[crony capitalism]] at the time), the people of Hong Kong started to question Tung and the HKSAR government.

During Tung's first term the government proposed a number of controversial infrastructure and reformation projects including [[Cyberport|technology park]], a science park, a Chinese medicine centre and the [[Hong Kong Disneyland|Disney theme park]]. Tung's decisions were somewhat questioned by the [[Government of China|central government]], including Jiang Zemin, former General Secretary of the Chinese Communist Party.

Questions arose over Tung's decision to grant the Cyberport Project to [[Richard Li]], son of tycoon [[Li Ka-shing]], without the benefit of an open tender.<ref>{{cite web |title = Tung pushed to explain high-handed decisions |work = The Standard |date = 18 December 1999 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=44890&sid=&con_type=1&d_str=19991218&sear_year=1999 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051510/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=44890&sid=&con_type=1&d_str=19991218&sear_year=1999 |archive-date = 30 April 2008 }}</ref><ref>{{cite web |last = AFP |title = Cyberport critics get stake hint |work = The Standard |date = 21 March 1999 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=25641&sid=&con_type=1&d_str=19990321&sear_year=1999 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20071122134958/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=25641&sid=&con_type=1&d_str=19990321&sear_year=1999 |archive-date = 22 November 2007 }}</ref>

The way in which<ref>{{cite web |last = Ko |first = Erick |title = Deal not more interference in marketplace says Tsang |work = The Standard |date = 5 November 1999 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=39820&sid=&con_type=1&d_str=19991105&sear_year=1999 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051459/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=39820&sid=&con_type=1&d_str=19991105&sear_year=1999 |archive-date = 30 April 2008 }}</ref> the Walt Disney Company's land grant for its theme park on a 50-year lease apparently disrupted the market, and for studying the possibility of setting up a casino in Hong Kong. His administration was seen as troubled, particularly during the confusion of the first days of the [[Hong Kong International Airport|new airport]], the mis-handling of the [[avian influenza]] epidemic, declining standards due to education reforms (specifically teaching in the [[Cantonese]] "mother tongue" and mandatory English examination for teachers), the [[Right of abode in Hong Kong|right of abode issue]],<ref>{{cite web |last = Ho |first = Andy |title = Trouble on the menu for the chief |work = The Standard |date = 1 July 1999 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=31917&sid=&con_type=1&d_str=19990701&sear_year=1999 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051443/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=31917&sid=&con_type=1&d_str=19990701&sear_year=1999 |archive-date = 30 April 2008 }}</ref> and his disagreement of political views<ref>{{cite web |last = Vittachi |first = Nury |title = Making of a modern-day adventurer |work = The Standard |date = 11 April 1999 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=52947&sid=&con_type=1&d_str=19990411&sear_year=1999 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051531/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=52947&sid=&con_type=1&d_str=19990411&sear_year=1999 |archive-date = 30 April 2008 }}</ref> with the popular then Chief Secretary, [[Anson Chan]].<ref>{{cite web |last = Vittachi |first = Nury |title = Chan still the most popular |work = The Standard |date = 29 April 1999 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=53022&sid=&con_type=1&d_str=19990429&sear_year=1999 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051537/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=53022&sid=&con_type=1&d_str=19990429&sear_year=1999 |archive-date = 30 April 2008 }}</ref> Tung's popularity plummeted with the economy, to 47% satisfaction at the end of August 2002.<ref>{{cite web |last = Lord |first = Paris |title = Tung popularity plunge |work = The Standard |date = 28 August 2002 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=20176&sid=&con_type=1&d_str=20020828&sear_year=2002 |archive-url = https://web.archive.org/web/20080430051406/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=20176&sid=&con_type=1&d_str=20020828&sear_year=2002 |url-status = dead |archive-date = 30 April 2008 |access-date = 11 January 2007 }}</ref>

=== Second term ===
{{main|Second term of Tung Chee-hwa as Chief Executive of Hong Kong}}
Tung Chee Hwa, with nominations from 714 members of the electoral college, was uncontested in the election for a second term, as according to the Chief Executive Election Ordinance, nominations from at least 100 members of the 800-strong [[Election Committee|electoral college]] are required for each candidate.<ref>{{cite web |last = Staff reporter |title = Zhu ratifies second Tung term |work = The Standard |date = 5 March 2002 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=13758&sid=&con_type=1&d_str=20020305&sear_year=2002 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051336/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=13758&sid=&con_type=1&d_str=20020305&sear_year=2002 |archive-date = 30 April 2008 }}</ref>

==== Accountability system ====
{{Main|Principal Officials Accountability System}}
In an attempt to resolve the difficulties in governance, Tung reformed the structure of government substantially starting from his second term in 2002.<ref>{{cite web |last = Yau |first = Cannix |title = Legco green light for accountability system |work = The Standard |date = 31 May 2002 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=17188&sid=&con_type=1&d_str=20020531&sear_year=2002 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051402/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=17188&sid=&con_type=1&d_str=20020531&sear_year=2002 |archive-date = 30 April 2008 }}</ref> In a system popularly called the Principal Officials Accountability system, all principal officials, including the [[Chief Secretary for Administration|Chief Secretary]], [[Financial Secretary (Hong Kong)|Financial Secretary]], [[Attorney General of Hong Kong|Secretary for Justice]] and head of [[List of Hong Kong government agencies|government bureaux]] would no longer be politically neutral career civil servants. Instead, they would all be political appointees chosen by the Chief Executive. The system was portrayed as the key to solve previous administrative problems, notably the cooperation of high-ranking civil servants with the Chief Executive. Under the new system, all heads of bureau became members of the [[Executive Council of Hong Kong|Executive Council]], and came directly under the Chief Executive instead of the Chief Secretary or the Financial Secretary. The heads of the [[Liberal Party (Hong Kong)|Liberal Party]] and [[Democratic Alliance for the Betterment of Hong Kong]], two pro-government parties in the [[Legislative Council of Hong Kong|Legislative Council]], were also appointed into the Executive Council to form a "ruling alliance," a ''de facto'' coalition.<ref>{{cite web |last = DeGolyer |first = Michael |title = Stating the obvious |work = The Standard |date = 1 January 2003 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=5877&sid=&con_type=1&d_str=20030101&sear_year=2003 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051542/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=5877&sid=&con_type=1&d_str=20030101&sear_year=2003 |archive-date = 30 April 2008 }}</ref> This practically shut out the [[Pro-democracy camp (Hong Kong)|pro-democratic parties]] and individuals.

==== Crisis of governance in 2003 ====
The first major move of Tung in his second term was to push for the [[National Security (Legislative Provisions) Bill 2003|national security legislation]] to implement [[Hong Kong Basic Law Article 23|Article 23]] of the [[Hong Kong Basic Law]] in September 2002. However, the initiative drew a hostile response from the pro-democratic camp, lawyers, journalists, religious leaders and human rights organisations.<ref>{{cite web |last = Staff reporter |title = Bill will limit freedoms say majority of Catholics |work = The Standard |date = 7 July 2003 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=23368&sid=&con_type=1&d_str=20030707&sear_year=2003 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051424/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=23368&sid=&con_type=1&d_str=20030707&sear_year=2003 |archive-date = 30 April 2008 }}</ref> This stoked public concerns that the freedoms they enjoyed would deteriorate. The sentiment, together with other factors such as the [[SARS]] epidemic in early 2003, when the government was criticised for its slow response, strained hospital services and the unexpected death toll, resulted in the largest mass demonstration since the establishment of HKSAR, with an estimated 500,000 people (out of the population of 6,800,000) marching on 1 July 2003. Many demanded Tung to step down.<ref>{{cite web |last = Paris Lord |author2 = Cannix Lau |title = 500,000 show anger at 'stubborn' rulers |work = The Standard |date = 2 July 2003 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=23054&sid=&con_type=1&d_str=20030702&sear_year=2003 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051417/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=23054&sid=&con_type=1&d_str=20030702&sear_year=2003 |archive-date = 30 April 2008 }}</ref>

In response to the protests, the leader of the Liberal Party, [[James Tien (politician)|James Tien]], resigned from the Executive Council on evening 6 July, signifying the withdrawal of the party's support for the bill implementing Article 23. As a result, the government had to postpone and later withdraw the bill from the legislative agenda.<ref>{{cite web |last = Ng |first = Dennis |title = Uncertain future for Article 23 |work = The Standard |date = 14 July 2003 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=23846&sid=&con_type=1&d_str=20030714&sear_year=2003 |archive-url = https://web.archive.org/web/20080430051428/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=23846&sid=&con_type=1&d_str=20030714&sear_year=2003 |url-status = dead |archive-date = 30 April 2008 |access-date = 11 January 2007 }}</ref> On 17 July 2003, [[Regina Ip]], the then Secretary for Security who was responsible for implementing Article 23, resigned for personal reasons. Another Principal Official, Finance Secretary [[Antony Leung]], who earlier suffered from a scandal over his purchase of a luxury vehicle weeks prior to his introduction of a car sales tax, which was dubbed as the ''Lexusgate'' scandal, resigned on the same day.<ref>{{cite web |last = Fung |first = Fanny |title = Leung, Ip quit |work = The Standard |date = 17 July 2003 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=24045&sid=&con_type=1&d_str=20030717&sear_year=2003 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051433/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=24045&sid=&con_type=1&d_str=20030717&sear_year=2003 |archive-date = 30 April 2008 }}</ref>

==== Subsequent developments ====
[[Image:TCWandCP.png|thumb|250px|right|Tung Chee Hwa shaking hands with [[Paul Martin]], the [[Prime Minister of Canada]] at the [[Government House, Hong Kong|Government House]] on 22 January 2005.]]
During the debate over Hong Kong's constitutional development, Tung was criticised as not reflecting effectively the views of the general population to push for 2007/08 universal suffrage to the People's Republic of China government.<ref>{{cite web |last = Staff reporter |title = Academics call for universal suffrage |work = The Standard |date = 27 June 2003 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=22875&sid=&con_type=1&d_str=20030627&sear_year=2003 |archive-url = https://web.archive.org/web/20080430051412/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=22875&sid=&con_type=1&d_str=20030627&sear_year=2003 |url-status = dead |archive-date = 30 April 2008 |access-date = 11 January 2007 }}</ref> Although the primary target of popular opposition was the PRC government, Tung's lack of support for the pro-democratic camp resulted in his low approval ratings.<ref>{{cite web |last = Ng |first = Michael |title = Tung main victim of SARS outbreak |work = The Standard |date = 16 April 2003 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=16606&sid=&con_type=1&d_str=20030416&sear_year=2003 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051357/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=16606&sid=&con_type=1&d_str=20030416&sear_year=2003 |archive-date = 30 April 2008 }}</ref>

In late 2003, in an attempt to bring back visitors to Hong Kong, Government agency [[InvestHK]] was mandated to sponsor the [[Harbour Fest]] music festival in October, organised by the American Chamber of Commerce. The result was a series of poorly attended concerts, HK$100m bill for the taxpayers, with the Government, InvestHK and the American Chamber of Commerce blaming each other for the flop,<ref>{{cite web |last = Luk |first = Eddie |title = $100m mistake |work = The Standard |date = 19 November 2003 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=31995&sid=&con_type=1&d_str=20031119&sear_year=2003 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20110522031054/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=31995&sid=&con_type=1&d_str=20031119&sear_year=2003 |archive-date = 22 May 2011 }}</ref> EOC chairman to be added.<ref>{{cite web |last = Yau |first = Cannix |title = Legco sets EOC deadline |work = The Standard |date = 10 December 2003 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=33321&sid=&con_type=1&d_str=20031210&sear_year=2003 |archive-url = https://archive.today/20130107161451/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=33321&sid=&con_type=1&d_str=20031210&sear_year=2003 |url-status = dead |archive-date = 7 January 2013 |access-date = 11 January 2007 }}</ref>

Tung's cabinet suffered another blow in July 2004 when another Principal Official, the Secretary for Health, Welfare & Food, Dr. [[Yeoh Eng-kiong]], resigned on 7 July to take political responsibility for the government's handling of the [[SARS]] outbreak in 2003,<ref>{{cite web |last = Lee |first = Matthew |author2 = Teddy Ng |author3 = Dennis Ng |title = Yeoh Resigns |work = The Standard |date = 8 July 2004 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=31995&sid=&con_type=1&d_str=20031119&sear_year=2003 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20110522031054/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=31995&sid=&con_type=1&d_str=20031119&sear_year=2003 |archive-date = 22 May 2011 }}</ref> after the release of the investigation report of LegCo over the issue.

In late 2004, the Tung administration experienced another embarrassment as the large planned sale of government-owned real estate, [[The Link REIT]], was cancelled at the last moment by a lawsuit by a tenant from an affected estate.<ref>{{cite web |last = Yau |first = Cannix |title = REIT woman set to launch appeal |work = The Standard |date = 23 December 2004 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=15688&sid=&con_type=1&d_str=20041223&sear_year=2004 |archive-url = https://web.archive.org/web/20080430051351/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=15688&sid=&con_type=1&d_str=20041223&sear_year=2004 |url-status = dead |archive-date = 30 April 2008 |access-date = 11 January 2007 }}</ref>

With the subsequent improvement in the economy over 2004, unemployment fell and the long period of [[deflation]]<ref>{{cite web |last = Staff reporter |title = Prices plunge 3.6pc as job worries bite |work = The Standard |date = 23 January 2002 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=12147&sid=&con_type=1&d_str=20020123&sear_year=2002 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051331/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=12147&sid=&con_type=1&d_str=20020123&sear_year=2002 |archive-date = 30 April 2008 }}</ref> ended. This resulted in a decrease in public discontent as the government's popularity improved, and popular support for the democratic movement dwindled with a protest in January <!-- 2004? 2005? -->attracting a mere few thousand protesters compared to the 1 July protests of 2003 and 2004. However, the popularity of Tung himself remained low compared to his deputies including [[Donald Tsang]] and [[Henry Tang]].<ref>{{cite web |last = Ng |first = Michael |title = Tung's poll numbers take a dive |work = The Standard |date = 21 December 2004 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=15522&sid=&con_type=1&d_str=20041221&sear_year=2004 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051346/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=15522&sid=&con_type=1&d_str=20041221&sear_year=2004 |archive-date = 30 April 2008 }}</ref>

====Resignation====
Tung's reputation suffered further damage when [[Hu Jintao]] gave him a humiliating public dressing-down for poor governance in December 2004. Official sources specifically cited the poor handling of the Link REIT listing, the [[West Kowloon Cultural District|West Kowloon cultural project]], the [[Hung Hom]] flats episode.<ref>{{cite web |last = Yau |first = Cannix |title = Hu reprimands Tung |work = The Standard |date = 21 December 2004 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=15512&sid=&con_type=1&d_str=20041221&sear_year=2004 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051340/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=15512&sid=&con_type=1&d_str=20041221&sear_year=2004 |archive-date = 30 April 2008 }}</ref> Tung himself denied it was a dressing-down, and insisted that he retained the central government's support, although he and the rest of the government were asked to examine their past inadequacies.<ref>{{cite news |title = HK leader denies Chinese scolding |work = BBC News |date = 20 December 2004 |url = http://news.bbc.co.uk/1/hi/world/asia-pacific/4109613.stm |access-date = 11 January 2007 |archive-date = 25 May 2006 |archive-url = https://web.archive.org/web/20060525120915/http://news.bbc.co.uk/1/hi/world/asia-pacific/4109613.stm |url-status = live }}</ref> Hu's words, however, were thinly veiled criticism. Nevertheless, in his January 2005 Policy Address, Tung gave a rather critical verdict on his own performance.

The speculation which was running rife in the weeks in the run-up to his actual resignation, and its intensity, continued to perpetuate the impression of Tung's "weakness" and "confusion".<ref>{{cite web |last = Hui |first = Sylvia |author2 = Zhu Sun |title = Media takes the measure of departed leader Tung |publisher = Sing Tao News Corp |date = 12 March 2005 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=4612&sid=&con_type=1&d_str=20050312&sear_year=2005 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051526/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=4612&sid=&con_type=1&d_str=20050312&sear_year=2005 |archive-date = 30 April 2008 }}</ref> Prior to Tung's resignation, in mid-February [[Stanley Ho]], a tycoon with close ties with Beijing, had already commented on the possible candidates for the next Chief Executive and personally endorsed Donald Tsang.<ref>{{cite web |last = Ng |first = Michael |title = Ho throws backing behind Tsang |work = The Standard |date = 18 February 2005 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=3355&sid=&con_type=1&d_str=20050218&sear_year=2005 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051448/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=3355&sid=&con_type=1&d_str=20050218&sear_year=2005 |archive-date = 30 April 2008 }}</ref> This started rumours that Tung would be nominated to the election of vice chairman of [[Chinese People's Political Consultative Conference]] (CPPCC) of the PRC. On the night of 27 February 2005, it was revealed that he and nine other persons would be appointed as new members to the CPPCC. All the local newspapers, except for the three controlled by the PRC government, namely ''[[Ta Kung Pao]]'', ''[[Wen Wei Po]]'' and ''[[Hong Kong Commercial Daily]]'', went to the presses preemptively on the morning of 2 March with the headline "Tung Resigns".<ref>{{cite web |last = Chan |first = Carrie |title = Tung resigns |work = The Standard |date = 2 March 2005 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=4035&sid=&con_type=1&d_str=20050302&sear_year=2005 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20080430051504/http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=4035&sid=&con_type=1&d_str=20050302&sear_year=2005 |archive-date = 30 April 2008 }}</ref> Tung declined to comment when questioned by journalists waiting at the government headquarters.

On 10 March 2005, Tung assembled a press conference at the Central Government Offices and announced that he had tendered his resignation due to "health problems".<ref>{{cite web |last = Yau |first = Cannix |title = Tung's gone. What next? |work = The Standard |date = 11 March 2005 |url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=4513&sid=&con_type=1&d_str=20050311&sear_year=2005 |access-date = 11 January 2007 |url-status = dead |archive-url = https://web.archive.org/web/20110522031840/https://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=4513&sid=&con_type=1&d_str=20050311&sear_year=2005 |archive-date = 22 May 2011 }}</ref> After flying to Beijing on 11 March, Tung was elected Vice Chairman of the [[Chinese People's Political Consultative Conference]] (CPPCC) on 12 March 2005, the last day of CPPCC annual meeting.

His resignation sparked a constitutional debate of whether his successor should fill his remaining term of two years, or start a new term of five years.<ref>{{cite news |last = Hogg |first = Chris |title = China to settle new HK chief row |work = BBC News |date = 6 April 2005 |url = http://news.bbc.co.uk/1/hi/world/asia-pacific/4415257.stm |access-date = 11 January 2007 |archive-date = 25 May 2006 |archive-url = https://web.archive.org/web/20060525120927/http://news.bbc.co.uk/1/hi/world/asia-pacific/4415257.stm |url-status = live }}</ref> Tung was mostly chosen by the PRC due to his business background as well as owing Beijing for saving him from bankruptcy with a US$100 million loan.<ref name="Hor">Horlemann, Ralf. [2002] (2002). Hong Kong's Transition to Chinese Rule. Routledge publishing. {{ISBN|0-415-29681-1}}.</ref>{{verify source|date=March 2021}}