Tung Chee-hwa's role at Alibaba unlikely to breach CPPCC rules
State leaders cannot join firms, but former HK chief’s residency complicates the issue
The appointment of former chief executive Tung Chee-hwa to e-commerce giant Alibaba's board has raised eyebrows but might not breach Beijing's rules on people in senior roles in public office joining firms, analysts said.
As a vice-chairman of the Chinese People's Political Consultative Conference, the country's top political advisory body, Tung ranks as a state leader.
Beijing issued a circular in October that forbids sitting officials from holding any concurrent post at listed companies, unless they get approval from superior authorities.
Even then, such officials are not permitted to receive pay, bonuses, shares and other "extra profits".
Zhang Xiaosen, vice-chairman of the company law committee of the China Bar Association, said Tung's case was complicated because he was a Hong Kong resident.
Ren Jianming , a professor of governance at Beihang University in Beijing, said: "Technically the state leaders are not allowed to take any roles in companies, but the case of Tung could be exceptional due to his Hong Kong identity."
While serving as a CPPCC vice-chairman, the late Ma Man-kei, of Macau, was chairman of the Macao Tai Wah Hong Investment Company.