No democracy yet, China tells HK

Political analysts said this will only fuel the controversy.

"I don't think the row will stop. Most people want popular direct elections in '07 and '08. After the NPC ruling, there will be dissatisfaction and opposition, and the local government will continue to be under pressure," said Cheung Chor-yung (張楚勇), a social studies lecturer at the City University of Hong Kong.

The NPC also voted to let changes be made in time for the two elections in 2007 and 2008, but stressed that any amendments must follow the principle of "gradual and orderly progress" as laid down in the constitution.

Yeung Sum (楊森), leader of the Democratic Party, vowed never to give up, hinting at more trouble ahead for Beijing.

"We'll never give up our fight for universal suffrage ... I'm worried the ruling will impact on investor views of the 'one country, two systems' blueprint ... The move will extend the Hong Kong government's governance crisis," Yeung said.