Chief Executive Donald Tsang Yam-kuen sought to quell speculation that sprang up about Hong Kong Monetary Authority chief Joseph Yam Chi-kwong's retirement schedule after comments he made in October as the financial crisis began to unfold.
Back then, Mr Tsang told legislators at a policy address session: 'Yam is my close comrade. We need to be faithful to our positions during this time to face the challenges. Yam will not resign or retire early.'
But he caused a stir at a post-policy address press conference when he said: 'Yam is over 60. Every appointment has a length limit. He has done a lot of work. But everyone must be prepared to hand over the torch to his successor to inject fresh impetus for change.' With the financial crisis beginning to be felt, his comment gave rise to speculation about Mr Yam's departure. Officials were quick to emphasise that Mr Yam's retirement schedule remained unchanged.
The media reported in late 2007 that Mr Yam's appointment would not be extended beyond 2009, by which time he would have reached 61, a year beyond civil service retirement age.
Pundits had said the perilous economic times could prompt Beijing to rethink the timing of a leadership change. One line of thinking was that Hong Kong needed old hands like Mr Yam to help see it through the economic storm. Rumour had it that Beijing was still unsure about the credentials of Norman Chan Tak-lam, who is widely tipped to be Mr Tsang's choice for the top post.
However, yesterday's announcement ended any lingering uncertainty about the leadership of the authority. Although Mr Yam's successor was not announced, it seems certain that Mr Tsang has convinced Beijing that Mr Chan should replace Mr Yam. Such a replacement could also be interpreted as a show of confidence in the regulatory regime and, importantly, the Tsang team's ability to work its way effectively through the crisis.
