Hong Kong’s “government and police will continue to exercise the highest degree of tolerance to let the young people gather,” Leung said last night at a briefing in his official residence. “Any place in the world if protesters surround, even charge or occupy, government or police quarters, the problem and consequence are very serious. I hope they can continue to be self-restrained and reasonable.”

The talks are the first sign of conciliation in the dispute which has seen tens of thousands of people block roads in several districts, shutting shops, schools and banks, and posing the biggest challenge to Chinese rule since it resumed sovereignty of the former British colony 17 years ago.

Leung’s offer is “a practical move to buy more time” while they wait for public opinion to turn against the movement, said Hung Ho-fung, an associate sociology professor at Johns Hopkins University in Baltimore who studies Hong Kong and China.

“I couldn’t imagine or have any expectations about any breakthrough,” Hung said. “They’re stuck in the corner. From Beijing’s perspective, from the Hong Kong government’s perspective, it’s very difficult to make meaningful substantive concession.

”The equity market will resume trading today [Friday] following two days of holidays. Stocks slumped this week, giving the benchmark Hang Seng Index (HSI) its biggest two-day drop since February.

David Fuller's view

I would be impressed by China if it stepped back and honoured the ‘one country, two systems’ policy, but I am not holding my breath.  You may be also be interested in this article: China’s Hong Kong: One country, two incompatible systems.