By Mark Stone, Asia Correspondent, in Hong Kong
The Hong Kong government has said it has withdrawn riot police from the city's streets as pro-democracy protests have begun to calm down.
In a statement, a government spokesman also called on the activists to leave the protest areas as peacefully as possible.
Riot police used pepper spray, tear gas and baton charges on Sunday in an attempt to disperse thousands of pro-democracy from a road that was blocked by thousands of demonstrators.
The activists fled several hundred metres down Harcourt Road in the government district amid chaotic scenes, with protesters screaming "shame" at officers.
Protesters are angry at Chinese interference in the island's politicsBut many protesters came right back to continue their protests in the Admiralty area - and they're still camped out, but the situation is calm.
Earlier, Hong Kong's chief executive Leung Chun-ying appealed for the protesters to go home and dismissed speculation that the Chinese army might intervene.
He said: "I hope the public will keep calm. Don't be misled by the rumours. Police will strive to maintain social order, including ensuring smooth traffic and ensuring the public safety. When they carry out their duties, they will use their maximum discretion."
Protesters wear goggles and plastic wrap to protect against pepper sprayBut in a statement, the movement called Occupy Central called on Mr Leung to resign and said his "non-response to the people's demands has driven Hong Kong into a crisis of disorder".
The statement added that the protest was now "a spontaneous movement" of all Hong Kong people.
On Sunday, several scuffles broke out between riot police and demonstrators who were angered by the use of tear gas, which is rare in Hong Kong.
An elderly woman was seen being carried away by protesters.
Thousands have gathered in the Admiralty area of Hong Kong IslandPolice had also used hand-held pepper spray aimed at dispersing the activists - but without success - and they warned greater force could be carried out.
The movement to occupy central Hong Kong, in protest at China's interference in the former British colony, had begun three days ahead of schedule on Sunday.
The leader of Occupy Central, Benny Tai, had planned to bring the heart of Hong Kong to a standstill this coming Wednesday - National Day.
But he has taken advantage of a separate student protest which has been gathering pace since last week.
The Chinese flag flying upside downAlthough Occupy Central and the student protests are separate movements, their motivation is the same.
They are calling for the Chinese central government to stop interfering with Hong Kong politics.
They want China to allow the people of Hong Kong to choose their own leaders: one person, one vote.
Police say they have arrested over 70 people during the protestsOn Saturday, more than 60 of the student protesters were arrested after they entered a government area.
Last month, the Communist Party's top political body ruled on changes to the political system in the territory, once a British colony but now a semi-autonomous part of China.
The ruling said that while Hong Kongers could choose their next leader, or Chief Executive, in 2017, they must select from candidates picked by Beijing.
The chosen candidates must declare their "love" for China and its Communist system.
The activists are refusing to back down in the standoffPolitical protests are banned across mainland China but under the agreement of the 1997 handover from Britain to China, Hong Kong was given autonomy.
That autonomy allows Hong Kong an independent legal and political framework: 'one country, two systems'.
Under this agreement, protests can take place in Hong Kong.
However, in the 17 years since the handover, there has never been such a large call for the central government in Beijing to back off.
The city's stock exchange insisted it would continue to operate as normal but the Hong Kong Monetary Authority said 17 banks have been forced to close 29 branches across the city.
Standard Chartered, HSBC Holdings, Bank of East Asia, the Bank of China and CITIC are among those who said their operations have been affected by the protests.
Reports suggest that over 30 people have suffered minor injuries over the past few days in clashes with the authorities.
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