Hong Kong  - Hong Kong leader Donald Tsang Tuesday hit out at what he claimed was a "groundless smear campaign" against him by political opponents.

The city's Beijing-appointed chief executive said the campaign, centred on allegations of favouritism towards his family members, was aimed at damaging his administration's credibility.

Tsang spoke out in his defence after a meeting of his Executive Council, a body of hand-picked close advisors.

Newspaper reports in recent weeks have criticised Tsang after his sister-in-law apparently received compensation for losses from Lehman Brothers mini-bonds ahead of most other affected investors.

The chief executive has also been criticized over claims that his son's father-in-law, a lighting supplier, would benefit from a voucher scheme proposed by Tsang to encourage Hong Kong people to use more low-energy light bulbs.

Speaking to reporters Tuesday, Tsang insisted he had no advance knowledge of the compensation agreement reached by his sister-in-law, and said he had not exercised his power to influence the deal.

He also said all suppliers, not just his son's father-in-law, stood to gain from the proposed scheme to give every resident 100 Hong Kong dollars (12.9 US dollars) of vouchers towards the cost of low-energy bulbs.

The response to the criticisms by Tsang suggested he is becoming increasingly concerned over what he described as the "growing trend" of personal attacks on him from opponents.

Appointed by Beijing in 2005 with personal approval ratings of 80 per cent plus, Tsang replaced former chief executive Tung Chee-hwa, who was forced out of office after eight years by his unpopularity.

Tsang's approval ratings have slumped in recent months and new polls due out this week are expected to see his popularity fall further in the wake of the recent controversies.

Hong Kong reverted to Chinese rule in 1997 after a century and a half of British colonial rule and has limited democracy. The chief executive is chosen by a pro-China election committee. (dpa)