Chief Executive Tung Chee-hwa has appointed two business leaders as new members of the Executive Council (ExCo): veteran securities regulator Laura Cha Shi May-lung and Legislative Councilor Bernard Chan, who is a member of the newly-founded The Alliance.

Announcing the appointments at a press conference, Tung said: "The appointments will ensure that different voices can be conveyed into the ExCo. And they will ensure government policies formulated by the council fall in line with the development and social interests of Hong Kong."

Introducing Laura Cha, who has served on Hong Kong's Securities and Futures Commission and was a former vice-chairman of the mainland's securities regulatory body, Tung said she will bring valuable expertise to ExCo .

"With her legal background and having worked for a long time in the financial and securities sectors, Laura has shared good knowledge of the industry. She understands very well, not just the local and regional industry, but also, internationally, the finance markets," Tung said.

The chief executive commended Bernard Chan for contributions to society in different areas.

"With Chan joining ExCo, he will be able to give us different voices and views on some of the very important issues we are facing," he noted.

Declining to clarify whether more appointments, especially from the "pro-democracy" camp, will be made, Tung said the government keeps an "open-minded" attitude and is willing to work together with "democrats" to foster Hong Kong's stability and prosperity.

Both Cha and Chan pledged to do their best to serve local citizens.

At the press conference, Cha said she has always been concerned about political and social matters in Hong Kong while she served in public office on the mainland.

But Cha said she needed time to gain more understanding of ExCo's operation and to set her priorities.

"Enhancing the communication and understanding between the legislature and executive branches will be one of my priorities... I will stick to the principle of professionalism and integrity I have followed in the past," said Cha, adding that she will not solely represent the voices of the business sector.

Cha, aged 54, served as the vice-chairman of the China Securities Regulatory Commission (CSRC) from 2001 until September. Before her post at CSRC, she was with the Securities and Futures Commission in Hong Kong from 1991.

Chan said he will follow ExCo rules on collective responsibility and confidentiality.

Five legislators, Chan included, formed The Alliance, a party created on the basis of the former Breakfast Group. The other four members are construction sector representative Abraham Razack, industrial sector Lui Ming-wah, the engineering sector Raymond Ho Chung-tai and Patrick Lau Sau-shing of the architectural, surveying and planning sector.

Chan said he will try to persuade the other members of The Alliance to vote as a bloc in the legislature. In case of any major impact or differences with their constituencies, members can raise a waiver.

Chan, aged 39, is the executive director of the Asia Financial Group. He is also the chairperson of the Hong Kong Council of Social Service and chairman of the standing committee on Disciplined Services Salaries and Conditions of Service.

The appointment of Cha and Chan raised the number of ExCo members to 21, including 14 principal officials. The other five ExCo members without portfolios are DTZ Debenham Tie Leung Limited Chairman Leung Chun-ying, Jasper Tsang Yok-sing of the Democratic Alliance for Betterment of Hong Kong (DAB), President of the Hong Kong Federation of Trade Unions Cheng Yiu-tong, barrister Andrew Liao Cheung-sing and Selina Chow Liang Shuk-yee of the Liberal Party.

DAB chief Ma Lik yesterday said the appointments made by Tung would help improve the relationship between the legislature and the executive branches.

As both new ExCo members have a sound knowledge in the financial sector, they will contribute to revitalizing the local economy, Ma said.

Liberal Party chief, James Tien, said the appointments would benefit the territory.

Cha, for example, can advise the government on policies to help mainland companies to seek listing in the territory.

However, Tien said the appointments failed to secure more support from lawmakers and it did not reflect a ruling coalition created in LegCo.

James Sung, a principal lecturer at the City University's School of Continuing and Professional Education, said the appointments would help consolidate the image of Hong Kong as the regional financial hub. Sung also believed the government has not secured enough support from lawmakers. The public might feel disappointed that no "democrats" or representatives from the middle-class were appointed to join ExCo.

(China Daily HK Edition October 13, 2004)