Embattled Hong Kong leader Tung Chee-hwa confirmed today he has submitted his resignation for health reasons.
"An hour ago I tendered my resignation as chief executive . . . my health is not as good as it used to be," Mr Tung told a news conference, putting an end to his long silence over news reports of his impending departure.
Mr Tung, Hong Kong's first post-colonial leader after the end of British rule in 1999, said if Beijing accepted his resignation Chief Secretary Donald Tsang would take over as acting chief executive until elections were held in six months.
Mr Tung, whose unpopular leadership sparked massive pro-democracy protests, said he had to take painkillers to help him stand through a policy speech in January and added that his biggest regret was being unable to serve till his term ends in mid-2007.
Questions over who will replace Mr Tung and any subsequent shakeup in the cabinet unsettled the market last week, but traders said any negative impact would be short-lived.
But many people still believe Mr Tung was fired by Chinese leaders in a violation of their promise to give the city a high degree of autonomy after the sovereignty handover.
Mr Tung denied that and emphasised his health was the only reason he was quitting.
But analysts said his fate was apparently sealed in December when Chinese President Hu Jintao scolded him in public for poor performance in an unprecedented rebuke.