Financial markets were on edge after the resignations of deeply unpopular Security Secretary Regina Ip and Financial Secretary Antony Leung, which raised fresh questions about the government's ability to revive what was once one of the world's most dynamic economies.

Tung gave little explanation for the departures on Wednesday and did not name their successors. He kept his usual distance despite pleas from local newspapers to show more leadership.

The Beijing-backed leader, who has been accused of being indecisive and out of touch with the public, merely waved at journalists as he moved in and out of his office on Thursday.

He flies to Beijing on Saturday where he is expected to report to his political masters on the city's biggest political crisis in years, offer names of possible new cabinet members and outline plans on how he hopes to keep the government running despite massive public protests.

Some residents and newspapers said the resignations were too little, too late.

"The resignations are useless. There will be new replacements but nothing will change. Hong Kong leaders are still controlled by Beijing," said a retired biologist from China, who identified himself only as Suen.

The South China Morning Post said Tung's handling of the resignations had only deepened the political crisis, which began on July 1 when half a million people took to the streets to denounce the government and its controversial plans for an anti-subversion law.

The "people power" protests and defection of a key ally later forced Tung into an embarrassing postponement of the bill, but he has vowed to reintroduce the legislation at a later date.

Tung has four years left of his term in office and most analysts said it was unthinkable for Beijing to let him go.

But Tung, and any possible replacement, face growing demands for greater democracy in the territory, which Beijing fears could spill over into the rest of China. Confrontations with increasingly bold pro-democracy forces could rise.