Hong Kong votes for new legislature as economy slows

HONG KONG (Reuters) - A low electoral turnout in Hong Kong's legislative polls on Sunday could undermine the democratic camp's drive for political reforms in the China-ruled city.

The polls are the fiercest since Hong Kong reverted from British to Chinese rule in 1997, with a record number of candidates decking out the city in banners and canvassing last minute swing votes by foot and open-top vehicles.

Despite this, the number of voters dipped from a record 56 percent turnout four years ago, with Hong Kong voters more concerned with economic rather than political issues, which could benefit better mobilized pro-Beijing candidates. One hour before the polls closed turnout was 40 percent.

"Overall speaking it's not so optimistic (for the Democrats)" said Ivan Choy, a political analyst at Chinese University.

At stake is the pro-democracy camp's control of one third of the legislature, without which Hong Kong's reformists would lose crucial influence over electoral reforms aimed at molding a model of universal suffrage by 2017, with Beijing's consent.

Since Hong Kong switched to Chinese rule, the Democrats have pressured Beijing's Communist leaders to allow direct polls as promised in the city's mini-constitution, or Basic Law.

Beijing acquiesced last December, ruling to allow universal suffrage in 2017 at the earliest, taking much of the steam out of the Democrats' campaigning.

The pro-democrats however, fear China will propose a watered down version, with electoral rules stacked against pro-democracy candidates. Should the Democratic camp fail to win at least 21 of the 60 seats, they will be unable to veto such moves.

"It's a very dangerous moment," said activist and ex-lawmaker Leung Kwok-hung during street campaigning to seek re-election.

Leung said the democrats' popular support had been hurt by their tendency to promote democratic ideals over livelihood concerns, with Hong Kong's economy slowing down quickly and with inflation now over 6 percent.

"If you're not going to facilitate the problem of the people at the grassroots level, surely you will lose their support ... it is some kind of political impotence," Leung added.

Speaking at a polling station ringed by dozens of protesters angry at government policies and the slowing economy, Hong Kong's leader Donald Tsang conceded the next four years would be "particularly trying" because of global financial turmoil.

He said good lawmakers were needed to ensure a "prosperous, stable, calm and harmonious four years".

INFIGHTING

Hong Kong's pro-democracy camp has been hampered by infighting and a surge in post-Olympic nationalism, which could benefit pro-establishment rivals by easing fears about China.

Since 1997, China has kept Hong Kong on a tight political leash, with the legislature having served as a check on the government's powers, led by a Chief Executive selected by a largely Beijing-backed, 800-seat electoral college.

"I don't particularly think the Democrats are doing a good job," said voter Nemo Tse, a 38-year-old IT professional. "But the government is becoming less accountable ... if we don't even have their opposition voices speaking out then I might consider voting with my feet and leaving Hong Kong," Tse added.

The polls, while limited in scope with only 30 of the 60 seats directly elected, still represent the most competitive vote on Chinese soil. The remaining 30 seats are voted upon by small, special interest groups called functional constituencies, of which 14 uncontested seats have already been filled.

Voting has now ended, with the results expected to trickle through early Monday morning local time (12 p.m. EDTD).

(Reporting by James Pomfret; Editing by David Fogarty)