Hong Kong Chief Executive Carrie Lam has denied the withdrawal of the city's controversial extradition bill constitutes a change of mind, despite having only offered a suspension previously.

Key points: The bill would have allowed extradition to mainland China and other jurisdictions

The bill would have allowed extradition to mainland China and other jurisdictions It has triggered ongoing unrest in the Asian financial hub, which has spooked business

It has triggered ongoing unrest in the Asian financial hub, which has spooked business Hong Kong's Government bought an ad in the Australian Financial Review to quell concerns

Speaking to reporters at a press conference on Thursday, the Beijing-backed leader said it was "not exactly correct to describe this as a change of mind" when asked why it took weeks for her Government to move from suspension to a complete withdrawal of the bill on Wednesday.

Ms Lam previously said that the bill was designed to close a "legal loophole" in the semi-autonomous Chinese territory, which would have allowed for extraditions of suspected criminals on a case-by-case basis to other jurisdictions without extradition treaties, including that of mainland China.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 48 seconds 48 s Carrie Lam also announced "direct dialogue" with the people when announcing the bill's withdrawal.

Those opposed to the bill feared this would have allowed Beijing to poach suspected political dissidents from within Hong Kong.

But following reports of its withdrawal, Hong Kong's Hang Seng Index surged more than 4 per cent to a one-month high ahead of the formal announcement.

On Thursday, the market was up 0.4 per cent by midday.

Ms Lam also announced other measures including opening a platform for dialogue with society to try to address other deep-rooted economic, social and political problems, including housing and mobility for young people, that she said were contributing to the current impasse.

"We must find ways to address the discontent in society and look for solutions," she said.

Protesters continue to press for all demands to be met

Protesters have also called for an independent inquiry into alleged police brutality. ( AP: Kin Cheung )

The withdrawal of the bill was one of the pro-democracy protesters' five demands, although many demonstrators and lawmakers said the move was too little, too late.

The four other demands are: retraction of the word "riot" to describe rallies, release of all demonstrators, an independent inquiry into perceived police brutality and the right for Hong Kong people to choose their own leaders.

Demonstrators were still calling for all demands to be met, with many placing emphasis on the independent inquiry.

Ms Lam said that the independent police complaints council was credible enough to address the probe, but others beg to differ.

"We have all suffered from a humanitarian disaster caused by the government and police force," said Wong, one of around 100 medical students protesting at Hong Kong University.

Clad in gas masks, they formed a human chain shouting: "Five demands, indispensable.

"Liberate Hong Kong, revolution of our time."

Hong Kong Government takes out ad in AFR

The ad told readers that Hong Kong's Government was "resolutely committed to 'one country, two systems'." ( ABC News )

The unrest has moved beyond opposition to the bill into a broader debate about the former British colony's autonomy under Beijing's rule.

Since its 1997 handover back to China from Britain, Hong Kong has been ruled under a "one country, two systems" framework which gave the city British capitalism, common law, and personal freedoms not found in mainland China for a period of 50 years.

China has denied meddling in Hong Kong's affairs and accuses Western countries of fuelling the unrest, which has grown increasingly violent — a situation that Beijing has warned could be met with force.

More than 1,100 people have been arrested since the violence escalated in June and Hong Kong is facing its first recession in a decade.

Vision of the unrest has sent jitters across the financial hub's business community, and Ms Lam said it was jeopardising tourism.

Can't lead, can't quit With demonstrations and protests ongoing, Carrie Lam finally reveals what many have suspected all along — she's powerless to lead the Hong Kong Government response, writes Bill Birtles. Read more Read more

On Thursday the Hong Kong Government took out a full-page advertisement in the Australian Financial Review which said it was "determined to achieve a peaceful, rational and reasonable resolution" and was resolutely committed to "one country, two systems".

It also told readers that the city had a "long tradition of peaceful and rational protest", and had strong fundamentals despite "recent disruptions".

"It's a puzzle that we will solve on our own," the advertisement read.

"We will no doubt bounce back. We always do."

ABC/Reuters

