Recognised as one of the most important figures of 20th century Chinese art, with many of his paintings selling for record prices in recent years, Wu was born in the southeastern province of Jiangsu in 1919. After graduating from the National Hangzhou Art College headed by Lin Fengmin, he won a scholarship in 1946 to study at the Ecole Nationale Superieure des Beaux-Arts in Paris the following year.

Despite the great popularity of his works in the art market, Wu led a simple life. At a ceremony on Friday to mark his latest donation, Wu's eldest son, Wu Keyu , who handled the donation of his father's paintings to Hong Kong, said: 'He had a small breakfast and lunch and a bigger dinner because he believed he had to get some work done before he was rewarded.'

Wu's output decreased as he got older and he only painted when he was inspired, Wu Keyu said. His four most recent and final works - At Rest, Illusion, Awakening and Nest - were created in the spring of this year before Wu's admission to hospital and are now permanently preserved in Hong Kong. They will go on display on July 23.

The museum is at currently staging an exhibition of his works, 'Lofty Integrity: Donation of Works by Wu Guanzhong', which runs until August 29.

'[Wu's] trust in Hong Kong was based on exhibitions the city held for him in 1995 and 2002,' Wu Keyu said. 'He thought Hong Kong was a good place to show his works.'

Fong Yuk-yan, an art dealer who represented the artist for more than 30 years, said Wu died peacefully.

Chief Secretary Henry Tang Ying-yen, who visited Wu at home before he was admitted to hospital, extended his condolences to Wu's family.

Szeto Yuen-kit, Chinese painting and calligraphy curator at the Museum of Art which houses Wu's earliest work from 1961 as well as later pieces, said he was devastated by news of the artist's death. He has worked on bringing Wu's art to the city since 1995.

The museum held a retrospective exhibition of Wu's works in 2002, featuring more than 100 of his paintings. The artist made Wu a quick sketch of Victoria Harbour when he visited Hong Kong during the exhibition.

'He might be gone, but his spirit is still here,' Szeto said.

He called Wu's achievements transcendent. 'The exhibitions are more than just art, they show the truth, kindness and beauty of this great artist.'

After completing his studies in Paris, Wu - unlike classmates such as Zhao Wuji and Zhu Dequn - chose to return to his home country and took up teaching. By choosing to stay in China, he was forced to endure the hardships of the Cultural Revolution, when he was sent to a labour camp where he was only allowed to paint on holidays.

After the Cultural Revolution ended in 1976, Wu resumed painting and held his first solo exhibition at the age of 59. His refreshing take on landscapes and unique use of oil and ink caught the eyes of the West later on, and in 1992, he became the first living Chinese artist to exhibit at the British Museum.

Jewellery designer Lo Kai-yin, who helped organise the landmark British exhibition, praised Wu's artistic achievements.

'When the West only knew about Qi Baishi and Zhang Daqian , he opened up an entirely new world,' Lo said. 'He set a new direction for modern Chinese painting.'

His paintings were often sold at record prices, including last December's sale of The Great Falls of Tanzania (1975) at Beijing's Poly Auction. It fetched US$4.5 million, a new record for the artist.

Vinci Chang, vice-president of auctioneer Christie's 20th Century Chinese art and Asian contemporary art, said Wu recreated and reinterpreted modern Chinese painting with his own theories on brush stroke and colour. 'He brought modern Chinese painting to international recognition, changing the whole face of art we see today,' Chang said.

Wu is survived by his wife and three sons.