Now Donald Tsang has received Beijing's formal appointment as Hong Kong's new chief executive (CE), he will face a complex situation and a myriad of challenges in the next two years.

He will have to cope with high public expectations, entertain demands from different quarters, and balance different interests and relationships.

These are no easy tasks. Yet Tsang's appointment represents a new start for Hong Kong. Tsang must foresee all these opportunities and challenges and be well prepared for them.

Looking at the big picture, we can see three factors that are in Tsang's favour.

To begin with, Tsang's appointment coincides with the trend of economic recovery.

As a matter of fact, all the problems besetting Hong Kong since its return to the motherland have derived from an ailing economy. With the implementation of the Closer Economic Partnership Arrangement with the mainland and the stimulating effect of the Individual Travellers Scheme, coupled with the improvement in the external economic environment, the city's economy has been showing marked rebound for more than a year.

It underwent rapid growth of 8.1 per cent last year and saw another 6-per cent hike this year. The spell of deflation that had lasted for 68 months ended unnoticed while the property and stock markets steadily started to climb back up. Cases of negative equity have dropped drastically, the government's budgetary conditions have improved and the unemployment rate has continued to decline.

Stimulated by such favourable factors, the public has regained its confidence in the SAR's economic prospects. A more peaceful mood in society will help create the right social atmosphere for the transition of power and for Tsang's rule in the coming years.

Second, Tsang's popularity rating among the Hong Kong people is very high. The resolution and efficiency he demonstrated during his term of acting CE won general acclaim. His popularity has even helped boost that of the entire government to new highs not seen for years.

In his campaign to win nominations for his candidacy in the CE by-election, he was able to project the image of a powerful figure who is willing to take responsibility and make commitments. His political platform, with "strengthening governance" as the keynote, was welcomed across the spectrum of society. Opinion polls indicated that 70 to 80 per cent of the local populace favoured him as the new CE, while ultimately some 90 per cent of the Election Committee members supported him. Such a lofty degree of support has bolstered his mandate and laid a solid foundation for his rule as well as his mission of strengthening governance, enhancing government efficiency and establishing a true executive-led regime.

Finally, he is benefiting from the past experience.

During his rule of more than seven years, former CE Tung Chee-hwa succeeded in putting into practice "one country, two systems". What Tung has gone through is an invaluable asset to his successor.

Having served under Tung, Tsang should know very well what to borrow from him and what to leave, and this ought to be beneficial in his bid to improve governance.

With these three favourable factors, as well as his profound administrative experience and communication skills and the support of principal officials and the civil service, Tsang can look forward to smooth sailing ahead.

We sincerely hope Tsang can steer Hong Kong through all its storms to a promising future.

Source: China Daily