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Li Yuanchao tipped to oversee Hong Kong and Macau affairs

Trusted member of Hu Jintao faction looks set to become vice-president after missing out on promotion to Politburo Standing Committee

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Li Yuanchao, a close ally of Hu

Li Yuanchao , a trusted ally of Communist Party General Secretary Hu Jintao, is tipped to become vice-president next year and oversee Hong Kong and Macau affairs.

However, in what appears to be the result of a compromise between party factions, sources said the 62-year-old head of the party's organisation department would not join its supreme Politburo Standing Committee and would remain a member of the Politburo.

Li, long seen as a front runner for promotion to a seven-member Politburo Standing Committee, appeared to lose out following intense horse-trading among various factions.

Sources said Li's relative youth weighed against him, with rivals saying he could wait for another five years before joining the Standing Committee. Five of the seven members widely tipped to join the Politburo Standing Committee this year would have to retire in 2017.

The deal has dealt a heavy blow to Hu's Communist Youth League faction, with the Politburo Standing Committee to be stacked with allies of former party chief Jiang Zemin . The only exception is Li Keqiang , who is tipped to become premier in March.

If the arrangement is confirmed, Li Yuanchao is likely to assume responsibility for overseeing Hong Kong and Macau affairs from Vice-President Xi Jinping , who will succeed Hu as party chief next week and as president in March.

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