New Delhi, Sept. 9 -- His office said in a statement that Tung passed away peacefully in the presence of his family members. Chinese official news agency Xinhua reported Wednesday that he died of an unspecified illness.

Tung, a shipping tycoon, had little political experience before a panel of pro-Beijing elites picked him to be the first leader of the southern Chinese territory after the end of British colonial rule in 1997.

Many believe Beijing perceived Tung as a loyalist who would obey the Communist leadership's edicts. He was also seen as beholden to Beijing because China's state-run banks helped rescue his family's ailing shipping company - Orient Overseas Container Line - during a global slump in the 1980s.

The early years after...