HK dollar-yuan peg unlikely, says Tsang Donald Tsang Yam-kuen said yesterday the Hong Kong dollar was unlikely to be pegged to the yuan over the next two years. Speaking on the Metro Radio phone-in programme Power Talk, Mr Tsang said conditions for pegging the Hong Kong dollar to the yuan would not be right until the yuan became freely convertible. 'I believe [pegging the Hong Kong dollar to the yuan] will not happen in the next two years,' he said. Mr Tsang said revaluation of the yuan was unlikely to have an impact on the strength of the Hong Kong dollar, which is pegged to the US dollar. He saw no need for the introduction of a dual system in Hong Kong under which both the Hong Kong dollar and yuan could circulate. 'Introducing such a system is a big move that requires amendments to laws,' Mr Tsang said. Report on chief executive pay accepted in principle The government has decided to accept in principle a report by an independent commission on the pay package and post-retirement arrangements for chief executives. A spokesman said the administration would work out the detailed arrangements according to the report's recommendations. Officials will brief Legco's constitutional affairs panel on the proposals next Monday. The report recommended that the new pay package for the chief executive should be set at 12.5 per cent above the chief secretary's pay. It also recommended that former leaders should be subject to post-retirement employment controls for three years after stepping down. Financing seen as key to community health A package on medical financing is the key to improving community health in Hong Kong, Donald Tsang told Election Committee members from the health services sector. He said a consultation paper on the financing scheme would be submitted for public consultation by the end of the year.