Hong Kong Chief Executive CY Leung said Monday in a statement that Paul Chan Mo-po was "devoted to serving the public and has been involved in various public duties for many years" and he was pleased to have Chan join his political team.

Earlier in the day, China's State Council (Cabinet) appointed Paul Chan as Secretary for Development of the Hong Kong Special Administrative Region (HKSAR) government. Paul Chan replaced Mak Chai-kwong, who resigned on July 12 for being suspected of abusing a civil service rent-reimbursement system.

The appointment was made upon nomination and recommendation by CY Leung and in line with the Basic Law of the HKSAR.

"He has outstanding leadership and co-ordination abilities. He is also familiar with the operation of the Legislative Council. I am pleased to have him join my political team," Leung said in the statement.

Aged 57, Chan has just finished his term of office as the Legislative Council member of the Functional Constituency ( Accountancy) and was the President of the Hong Kong Institute of Certified Public Accountants in 2006. He was a Non-Official Member of the Commission on Strategic Development from 2005.

On Saturday, Hong Kong-listed Wharf Holdings, owners of HK's two major shopping centers and the city's cable TV operator, said in a statement that Chan has resigned as an independent non- executive director.

"He has decided to resign because he wishes to pursue other career interests," the company said in the statement filing to the Hong Kong stock exchange.