Hong Kong’s pro-democracy movement has suffered a setback at crucial by-elections which resulted in them losing their all important veto in the former British colony.

The democrats won only two of four seats contested in the 70-seat Legislative Council and now hold only 26 seats in the chamber, one short of being able to block most bills.

They had hoped to register a protest vote against Beijing with Sunday’s ballot. Many in Hong Kong are worried that the region's semi-autonomous status is being eroded by China.

The by-election marked the first time the democratic camp has lost its long-standing veto power via the ballot box.

Starry Lee, the leader of the city's largest pro-Beijing party, the Democratic Alliance for the Betterment and Progress of Hong Kong (DAB), said: "The breakthrough in this by-election is a shot of confidence for our supporters and for people who hope Hong Kong can move forward and stop wasting energy with in-fighting."

The four seats were previously held by pro-democracy lawmakers who were expelled after they defied Beijing at their oath-taking ceremony. Another two seats are yet to be contested.