Beijing is set to deliver a formal response to the ongoing Hong Kong protests at 3 p.m. local time on Monday.

Demonstrations started eight weeks ago in the city against a legislative push to allow people in Hong Kong to be extradited to Mainland China, but they've snowballed into a movement for full democracy and autonomy from Beijing.

Over the weekend, protesters again took to the streets, clashing with authorities. A march on Saturday against an assault the previous weekend by suspected triad gang members ended in violent turmoil as riot police waded in to disperse crowds. On Sunday, riot police fired rounds of tear gas and rubber bullets as demonstrators marched toward the Chinese government's office in the city.

As tensions escalate, China watchers are waiting to see how Beijing will respond. According to Ben Bland, director of the Southeast Asia Project at Sydney-based think tank the Lowy institute, there are three possible scenarios how the demonstrations could pan out from here.

Three directions Hong Kong could head from here: Authorities wait out protesters Beijing intervenes directly, imposes martial law Authorities make meaningful concessions

The most likely outcome, said Bland, is that Beijing and Hong Kong will try to wait out the protests, arrest rally leaders after the momentum slows down and "slowly bring the city back to order."

It's unlikely, but possible, that Mainland authorities would directly intervene, Bland said, explaining that Beijing could exercise martial law but that would be the end of the "one country, two systems" principle. That concept was promised to Hong Kong when the former British colony was reunited with the mainland, and guarantees that the city maintains a separate economic and legal system.

If Beijing were to send the People's Liberation Army out into Hong Kong's streets to "stabilize the situation" (which it suggested last week it could do) that would have "a big negative impact" on markets, according to Jackson Wong, asset manager director at Amber Hill Capital. Such a move would "break a lot of beliefs that Hong Kong is autonomous," he explained, adding that "investors would probably flee initially."

Wong echoed Bland's assessment, saying "the situation in Hong Kong is not good. But it's not to an extent that we need the PLA in Hong Kong."