New finance boss for Hong Kong

Mr Tang: 'Won't cut the budget deficit quickly'

Henry Tang has been appointed as Hong Kong's financial secretary and Ambrose Lee as the territory's security boss.

Hong Kong chief executive Tung Chee-hwa confirmed the appointments shortly after Chinese state news agency Xinhua said they had been approved by China's state council, or cabinet, on Saturday.

The appointments came almost three weeks after the former finance and security chiefs resigned amid mass public protests against Mr Tung's administration.

"My prime job is to improve the economy. I will... set a new target to balance the budget," Mr Tang said in his first public comments since being appointed.

Tackling the deficit

Formerly a textiles tycoon, Mr Tang has been working as Hong Kong's commerce chief.

In his new job he will have to tackle Hong Kong's unemployment and budget deficit, both of which are at record levels.

Mr Tung has faced sustained protests

But some analysts believe the state of public opinion makes swift progress unlikely.

"The general voice from the public is that the pace of deficit reduction has to be slower, and he has a responsibility towards that," said Paul Tang, chief economist of Bank of East Asia.

"My concern is that while Mr Tang is going to slow down the pace, the government must be careful not to send the wrong message - that because of the current political pressures they have given up the will to reduce the budget deficit."

New security boss Ambrose Lee has been heading Hong Kong's Independent Commission Against Corruption.

One of his key responsibilities will be to ensure public acceptance and the passage into law of a controversial anti-subversion bill.

Untenable

Former finance secretary Antony Leung resigned after a furore over a luxury car he bought in February just weeks before he raised the tax on such vehicles.

The government said Regina Ip's resignation as security chief was for personal reasons.

Thousands of ordinary citizens feel their rights are under threat Why the anti-subversion bill has proved controversial

However, analysts said Ms Ip's determined handling of the anti-subversion bill - known as Article 23 - had made her position untenable.

The government had back-tracked on the bill amid criticism that it could undermine Hong Kong's political, religious and media freedoms.

The outcry over Article 23, which saw 500,000 people protesting in the streets at one point, led to Mr Tung delaying attempts to get the bill approved by the legislature.

He later said he would not seek to force through laws that the territory's citizens did not accept.