Two of Hong Kong's top cabinet ministers have announced their resignations within hours of each other as the China-backed government's biggest political crisis in years deepens.
The unprecedented resignations raised questions whether the rapidly crumbling administration of Hong Kong leader Tung Chee-hwa was still able to govern, and how much longer Tung himself would be able to survive in office.
The departure of controversial Security Secretary Regina Ip and Financial Secretary Antony Leung had been widely expected following mass protests in recent weeks against the government's controversial plans for an anti-subversion law and growing public anger at its failure to revive the sputtering economy.
But political analysts said the resignations would not be enough to defuse political tensions, and might even increase public pressure on the government to allow Hong Kong people to elect their own leaders, a demand sure to alarm Beijing.
"Beijing's biggest worry is that Hong Kong will get out of control and demand full democracy. To the Communists, things must be under control - what if such a trend occurs in other places in China, and they start wanting more autonomy?" said political commentator Lo Chi-kin.
Analysts were divided over how investors in the recession-weary territory would react to the resignations, announced after financial markets closed on today.
Some said the stock market, which has been a laggard in the region this year, would likely fall on Thursday because Leung's resignation could lead to uncertainty about the future of economic policies.
Others said the resignations might prove an encouraging sign that the government would be more responsive to public demands in the future and sidestep more political turmoil.
Late today, Economic Development Secretary Stephen Ip was named to take over Leung's job on a temporary basis