China's third most powerful leader said Monday that Beijing has the right to "step in" to Hong Kong's leadership contest, according to local politicians who met him, in remarks fueling fears of meddling from Communist Party leaders.

The comments by Zhang Dejiang, the head of China's parliament and its leading official on Hong Kong issues, came after other officials played down rumors that Beijing is interfering in a race pitting China's preferred candidate against a more popular figure.

Under laws governing the former British colony since its return to Chinese rule in 1997, autonomous Hong Kong has the right to choose its chief executive via a 1,200-strong election committee stacked with Beijing loyalists.