'The central government fully approves and completely trusts the work he has done since taking office,' official mainland reports quoted Mr Hu as saying.

The president said stability was critical to the 'success or failure of the 'one country, two systems' policy and the important task of the nation's peaceful unification'.

'Without stability, there's nothing to discuss,' he said.

Observers said the high-level reception given to the tycoons was intended to soothe any concerns they might have towards Mr Tung in the wake of the July 1 protest.

Flanked by all the top officials responsible for Hong Kong affairs, Mr Hu received the business leaders and their families in the Great Hall of the People.

He called for 'full support for the administration of Chief Executive Tung Chee-hwa and the SAR government he leads'.

'Mr Tung has been working hard and has done a lot of work to maintain prosperity and stability in Hong Kong, and he has the full trust of the central government,' Mr Hu was quoted by Xinhua as saying.

'Mr Hu called on the industrial and commercial community in Hong Kong to support Tung and the SAR government, improve ties with the middle-class and other walks of life in Hong Kong, and make more contributions to Hong Kong's economic development and co-operation with the mainland.'

Mr Hu reiterated that Hong Kong played a crucial part in the mainland's reunification strategy.

He did not make any direct reference to the July 1 protest but stressed that political reforms in Hong Kong must stay in line with the Basic Law, hinting that reforms must not exceed the scope allowed in the city's mini-constitution.

The visit by the tycoons followed more than a dozen similar visits to Beijing by political parties and social groups from Hong Kong over the past few weeks. Among other leaders who took part in the meeting were Vice-President Zeng Qinghong, Vice-Premier Wu Yi and State Councillor Tang Jiaxuan.

Mr Hu remarked on the fact that many of the tycoons were accompanied by their 'next generations'.

'I am particularly happy to see that not only have we the first generation here, we are also joined by your second and third generations today,' he told the guests. 'This is truly a star-studded delegation.'

Mr Fok, who led the delegation, said he believed Mr Hu's main message was an appeal to the business community to help maintain stability in Hong Kong.

Joseph Cheng Yu-shek, professor of political science at City University, said the reception was both a show of respect to the business leaders and a move to consolidate the new leadership's powerbase.

'It was a show of courtesy that had to be done as Jiang Zemin also granted them an audience in the past,' he said.

Professor Cheng said Mr Hu's emphasis on the need for stability to be maintained was aimed at smoothing grievances some tycoons hold towards Mr Tung.

Veteran China-watcher Johnny Lau Yui-shiu said the high-profile meeting also demonstrated the importance Beijing placed in Hong Kong's business sector rather than political parties.

'Political support among the middle-class for Tung has been shaken after July 1, and the central government believes that strengthening support among the tycoons could help rebuild Hong Kong's stability,' Mr Lau said.