Polls closed at 10.30pm yesterday, and only around 40 per cent of the 3.37 million registered voters had cast their ballots.

In the last election a record 55 per cent had turned out.

Voter turnout this year is expected to have hit its lowest mark in 10 years as concerns about wages, education and inflation overshadowed issues of democratic reform.

Results are expected this morning.

Conservative parties are expected to benefit from this year's poorer showing, and the opposition camp is expected to win fewer votes than in the 2004 polls.

Four years ago, democratic parties captured almost two-thirds of the vote amid widespread anger over Beijing-backed officials and policies, although the vagaries of Hong Kong's political system meant it won only 25 of the 60 seats.

But this time Hong Kong's Chinese University political analyst Ma Ngok said: 'The democrats face a tough fight. They could see their presence in the legislature diminished.'

But with 46 of 60 legislative seats up for grabs, aspirants fanned out across the territory to rally supporters. They chanted slogans from open-top buses cruising local neighbourhoods and visited restaurants armed with bundles of campaign leaflets. Election banners and flags adorned buildings everywhere.

Opinion polls showed that high-profile pro-democracy figures such as Ms Emily Lau, who has been fighting for democracy in the legislature for 17 years, and maverick activist Leung Kwok Hung might lose their seats.

Overall, analysts said the opposition could lose as much as five of their 26 seats. Any more than that would cost them their veto power and greatly expand the ability of conservatives to mould Hong Kong's election law in China's favour.

China quelled much of the debate over democratic reform last year when it announced the territory could elect its own leader in 2017 and all of its legislators in 2020, at the earliest.

And despite the waning popularity of Chief Executive Donald Tsang and his government, democratic lawmakers have been hard-pressed to convert broader discontent into support.

'This is a critical moment for the pro-democracy camp,' said opposition candidate Audrey Eu as she rallied supporters in downtown Hong Kong yesterday morning. 'We need to...preserve our bargaining power.'

As well as the central government's timetable for direct elections, Beijing's allies in the election are expected to benefit from a booming mainland economy and a resurgent sense of nationalism which only increased with last month's Olympics.

'The whole idea of attacking China doesn't make sense, especially in light of the Olympics. People are really satisfied with performance on the mainland,' said political analyst Michael DeGolyer of Hong Kong Baptist University.

Mr Tam Yiu Chung, head of the Democratic Alliance for the Betterment and Progress of Hong Kong - the main conservative Beijing-allied party (DAB) - described Hong Kongers as pragmatic voters who would pick candidates with strong ties to the territory's mainland rulers.

He said: 'We are able to communicate with the local government and leaders in Beijing, so we are in a better position to reflect voters' views and solve their problems.'

But Professor DeGolyer said growing patriotism will not necessarily translate into pro-Beijing support.

'People are starting to treat their votes in the same way they deal with their investments,' he said.

'I do not know what the 'China factor' is. If the definition is 'support your country, vote for the DAB', that is not the case anymore,' he added.

And 40-year-old banker Sunny Poon said patriotism was not a factor in how he voted, instead insisting: 'I choose people on what they propose to do and their track record.'

ASSOCIATED PRESS, AGENCE FRANCE-PRESSE

46 legislative seats up for grabs