Tung died on Tuesday night surrounded by loved ones, according to local media. His office described him as a man "devoted to his country and its people."
Tung took over from the last British governor, Chris Patten, in July 1997 when the UK handed Hong Kong back to China, ending more than 150 years of British control. Born in Shanghai in 1937, he graduated with a mechanical engineering degree from Liverpool University and worked at General Electric in the US for almost a decade before moving to Hong Kong in 1969.
He joined his father's shipping conglomerate, Orient Overseas, taking over the reins in 1979. His political career began in 1992 when he was appointed to Patten's executive council, despite having little political experience. Tung was widely believed to have been handpicked by Beijing to lead Hong Kong after the handover, and was seen as a loyalist — particularly after China's state-run banks helped rescue his family business during a global slump in the mid-1980s.
Beijing's backing was made famous at a reception in January 1996, when China's then-president Jiang Zemin walked across a packed room at the Great Hall of the People to shake Tung's hand — a widely photographed gesture that signalled his endorsement.
Tung's tenure was overshadowed by the Asian Financial Crisis, two major epidemics and historic protests that drew criticism of his administration. He eventually resigned in 2005, mid-way through his second term.