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BEIJING China's legislature on Sunday ruled out allowing open nominations in the inauguralelection forHongKong'sleader, saying they would create a "chaotic society." Democracy activists in the Asian financial hub responded by saying that a long-threatened mass occupation of the heart of the city "will definitely happen."

In setting tight limits on how far electoral reforms can go inHongKong, Beijing issued its firmest reminder yet that it's still in charge despite the substantial autonomy it promised the city after taking control from Britain in 1997.

The guidelines laid down by China's communist leaders ratchet up the potential for a showdown pitting Beijing againstHongKongdemocracy supporters, a group that represents a broad swath of society, including students, religious leaders, and financial workers.

The decision by the legislature's powerful Standing Committee sharpens fears that China wants to screen candidates for loyalty to the central government and is reneging on its promise to letHongKong'sleader be directlyelectedby voters, rather than the current committee of mostly pro-Beijing tycoons.

"At this very moment, the path of dialogue has been exhausted," said Benny Tai, a leader of the Occupy Central with Love and Peace protest movement, which has vowed to rally at least 10,000 people to paralyze HongKong'sfinancial district known as Central to press demands for genuine democracy.

The group will launch "wave after wave of protest action" in the coming weeks "until we get to a point when we launch the all-out Occupy Central action," Tai told reporters. University students are also planning to boycott classes next month.

Thousands of people gathered in a park across fromHongKonggovernment headquarters Sunday evening to protest the widely expected announcement, chanting slogans and waving their cellphones.

Earlier in the day, Li Fei, deputy secretary general of the National People's Congress' Standing Committee, told a news conference in Beijing that openly nominating candidates would create a "chaotic society."

Under the legislature's guidelines, a maximum of three candidates, each approved by more than half of a 1,200-member nominating committee, will be put forth toHongKong's5 million eligible voters in 2017. The public will have no say in choosing candidates, raising fears of what some have termed "fake democracy."

"These rights come from laws, they don't come from the sky," Li said. "ManyHongKongpeople have wasted a lot of time discussing things that are not appropriate and aren't discussing things that are appropriate."

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'Fake democracy'? China tightens restrictions on Hong Kong election