CHINA: Tung Chee-hwa, the embattled chief executive of Hong Kong who took over leadership of the former colony from Britain in 1997, has resigned, according to various reports.
Mr Tung arrived in Beijing yesterday for China's annual parliament meeting, the National People's Congress (NPC), where he is likely to be given a seat on the country's top advisory council - a prestigious appointment which could pave the way for a face-saving departure.
As avuncular as ever, the former shipping tycoon was happy to keep reporters guessing.
"I know you are concerned about many questions. I will reply at an appropriate time," he said.
However, the former British colony was buzzing with reports he was on the way out.
Hong Kong's Chinese-language Ming Pao daily said Mr Tung handed in his resignation before the lunar new year, which started on February 9th. It was approved following an emergency meeting of the politburo in Beijing. His term is supposed to end in mid-2007.
Many believed the writing was on the wall for Mr Tung since he was given a very public rap on the knuckles by President Hu Jintao for his poor performance.
"There have been a lot of people asking him to step down since the huge democracy demonstrations on July 1st, 2003, but he didn't. Suddenly it seems to have changed," said Prof Joseph Cheng Yu-shek of Hong Kong's City University. "It's a good thing that he steps down, if it happens. He performed badly and lost the confidence of the Hong Kong people. But there is still a lack of clarity and transparency. Did he step down or did Beijing ask him to go?"
Recent speculation that Mr Tung was on the way out has centred on his ascension this week to the NPCCC, the top advisory body of China's parliament.
With the annual parliament meeting this weekend, many analysts see it as an ideal opportunity for Mr Tung to depart with honour.
He would then be elevated to a vice-chairman of the advisory body, which is a Chinese equivalent of a knighthood or non-executive directorship.
"There must have been negotiation for Mr Tung to step down and the assumption is he will be given this chair at the NPCCC and that they will heap praise on him," said Hong Kong civic activist and political analyst Christine Loh.
The appointment to the NPCCC is normal practice for very senior Chinese leaders, such as vice-premiers or provincial governors, a dignified way for senior cadres to move from a first-line to a second-line position.
If the reports prove true, Mr Tung will be initially replaced by his right-hand man, chief secretary Donald Tsang Yam-kuen. A new executive has to be selected within six months.
Mr Tsang has proven more popular than Mr Tung but he is still seen as being very much Beijing's man. He exchanged a lengthy handshake with President Hu in Macau last year, which China-watchers read as a sign he is favoured by the current government.
However, succession is not a done deal yet.
"We must not assume it will be Donald [ Tsang]. He'll be acting CEO but there could be a dark horse out there. There will be an election but I suspect there is someone out there already chosen," Ms Loh said.
Prof Cheng said the Chinese government will be looking in a very focused way at what happens next.
"The Chinese leadership must have an acceptable candidate before they move - they wouldn't move without one," he said.
Mr Tung (67) has said of late that his health had been deteriorating and many believe that this will be given as the reason for his resignation as chief executive.
Other reports said that the central government was still divided over Mr Tung's exact departure date.
There was no comment from the Chinese government on the matter and Hong Kong government sources were also not confirming or denying anything.
China has been shocked and angered by repeated calls for democracy in Hong Kong and consistently reiterates the need for political stability in the territory of seven million people.