I wrote this yesterday, but never got round to posting it.  Now it seems that Tung Chee Hwa is indeed about to resign as Chief Executive of the HKSAR, for "health reasons" (namely that everyone in Hong Kong is sick of him), as predicted in yesterday's FT.

It's amusing to see the different interpretations that are being placed on Tung Chee Hwa's appointment as a delegate to the Chinese People's Political Consultative Council, and his likely elevation to vice-president of this august body.

Some view it as a promotion, and Simon was unkind enough to suggest that it was an example of the 'Peter Principle' at work.  DAB leader Ma Lik was quoted as saying that it "underscores the central government's trust in Hong Kong", whatever that means.

Others say that it's a sign that Tung is on his way out, and that being vice-chairman of the CPPCC is not an important job:

The CPPCC's powers are largely symbolic and the body is regarded as a transition point for senior Chinese officials on their way to retirement.

This certainly makes more sense that the PRC government giving Tung an important job.  They're not stupid, and they've worked closely with Tung since 1997, so it seems unlikely they'd trust him with a job that really matters.  Much more likely that this is preparing the way for his departure.