China's Hu in Hong Kong for handover anniversary

HONG KONG, June 29 (Reuters) Hong Kong headed into a weekend of ceremonies to mark the 10th anniversary of its return to Chinese rule today as Hu Jintao flew into the bustling city for the first time since he became China's president.

Hu's visit is a symbolic milestone for Hong Kong after a low point in 2004 when, on a trip to nearby Macau, Hu dressed down then leader Tung Chee-hwa for poorly managing the city of nearly 7 million.

Hu, who will swear in Hong Kong's leader and cabinet to a new five-year term during his trip, last visited the city in 1999 when he was vice president.

Despite rough patches in the decade since the end of British colonial rule -- including an economic slump, the perceived weak governance of former leader Tung and the SARS epidemic -- analysts generally give Hong Kong plaudits. The economy has rebounded and the stock market is hovering near record highs.

But critics note that problems like air pollution and the rich-poor gap have worsened, and decry Beijing's heavy-handed management of political change in the territory, despite popular support for democracy.

On Sunday, the day of the anniversary, Hu will swear in Chief Executive Donald Tsang and his cabinet to a new term in office.

Tsang became Chief Executive when Tung resigned in 2005. Tung cited health reasons for his departure, but it is widely believed that Beijing forced him to step down.

Hu, who is also head of China's ruling Communist Party, will also attend a flag-raising ceremony, visit a local family's home and make an inspection of the local People's Liberation army garrison.

Reuters SLD DB