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Chief Executive Donald Tsang said he would announce his candidacy for a second term when he wraps up his policy platform and finds out what he can do for the next five-year term.

When asked if he was using the action agenda as the blueprint for his policy platform for his second term, Tsang said: "The action agenda is not for me alone but for everyone to read." He also added: "As the action agenda comes from the economic summit, which has been under preparation for some months, it is not prepared for the purpose of the election."

As to when he will announce his candidacy, he said he did not like to mix all things together. "What I need to consider is what my policy platform will be. One thing that is very important in the platform and which must be considered is whether there is anything that Donald Tsang could do and others could not, such that he is required to stand for the election."

"And whether the things I do could really improve Hong Kong's society and its economic and political situation is the biggest challenge. The day I can find the answer to this question will be the day I declare my candidacy," Tsang said.

On the question of cutting tax, Tsang said he still remembered the painful days of the Asian Financial Crisis when the Hong Kong currency market was under attack of the foreign speculators. "We need to keep sufficient reserves," he explained. "But our target is to keep the wealth with the people instead of with the government. The Financial Secretary is consulting on his next Budget. But whoever the next CE, he will need to make use of the financial resources to help the grassroots and middle class."