By Chris Hogg BBC News, Hong Kong

Mr Tsang brings a very different style to the office

There cannot be many places in the world where replacing a leader with a career civil servant is greeted with a fair deal of enthusiasm.

In Hong Kong though, the selection of Donald Tsang to replace the unloved Tung Chee-hwa seems to be a popular move.

Even those who disliked the way he was chosen - by an election committee of 800 of the great and the good, rather than by universal suffrage - express the hope he will do a better job.

"Tung was perceived as indecisive, unfamiliar with the administrative system and, of course, unpopular," said political analyst Andy Ho.

"Tsang is his antithesis. He is decisive, he knows the system inside out, and he was the most popular public office bearer before he stood for this election."

Mr Tsang's style is very different to that of his predecessor.

His every move is now being watched closely, to see if he is a modern leader or just a revamped colonial bureaucrat too pleased with himself Christine Loh, Civic Exchange

"His bow-ties, snazzy suits, the fact that he's more talkative, especially to the foreign and the local press and more social, should mean he will do well," said Dr Michael DeGolyer from Hong Kong Baptist University.

"But many expect no changes in policy as Beijing wishes to test whether Tung's problems were due to him or due to what he tried to do. If the policies were the problem, then expect trouble ahead, because Tsang supposedly won't change policies or ministers," he said.

Professor Joseph Cheng from City University in Hong Kong agreed that Mr Tsang was likely to avoid controversial policy changes in his two-year term.

"Since Tsang will face re-election in just over 18 months' time, his priority may well be to consolidate the Chinese leadership's trust in him," Mr Cheng said.

"What's more, he has to ensure that business leaders are satisfied with his performance because they have good contacts with the Chinese."

And he pointed out that Mr Tsang would also be trying his best to improve his relationship with pro-Beijing parties in Hong Kong.

Tasks ahead

So what will be the biggest challenges for the Tsang administration?

DONALD TSANG Knighted for work during British colonial rule before 1997 Mostly held financial posts, and became first Chinese to be Financial Secretary Popular with public but loyal to Beijing Profile: Donald Tsang

"Top of the list should be maintaining economic growth," said Peter Wong, a Hong Kong delegate to China's highest policy-making body, the National People's Congress.

"Without economic growth, without the ability to contain unemployment, the stability of the community cannot be assured."

The economy is improving in Hong Kong. Unemployment has been falling in recent months. But there is no room for complacency, according to the founder of the think tank Civic Exchange, Christine Loh.

She argued that Mr Tsang had said three interesting things about how he planned to reform the administration:

• He will appoint more people to the Executive Council, his Cabinet.

• He will help ministers to push through policies, even if they do not have the support of the entire Executive Council, providing they have his support.

  Whether Tsang can forge a compromise on this issue acceptable to all parties is the big test ahead Michael DeGolyer, Hong Kong Baptist University

• And ministers will only have to attend Executive Council meetings when issues under their portfolio are being discussed.

Some here see this as a return to the colonial system which the British used to rule Hong Kong.

"His every move is now being watched closely, to see if he is a modern leader or just a revamped colonial bureaucrat too pleased with himself," Ms Loh said.

And then, of course, there is the issue of constitutional reform, and the struggle by pro-democracy activists for a greater say in the choice of the territory's leaders and its legislative council, Legco.

"To get constitutional reform through he needs 40-60 votes in Legco," said Michael DeGolyer.

"One block of 25 wants him to go further than he has signalled he wants to. Another block of around 30 wants much less - Beijing wants progress, but not too fast."

"Whether Tsang can forge a compromise on this issue acceptable to all parties is the big test ahead," he said.

But the test may not be for Mr Tsang, analyst Andy Ho said.

"Democratic reform? In the end, despite 'One Country Two Systems' - the arrangement that is supposed to guarantee Hong Kong a high degree of autonomy - this is an issue that Beijing, not the chief executive, will decide," he said.