The interview with Lee Bo, broadcast late on Monday, came a day after another man he worked with, Gui Minhai, purportedly confessed to illegally selling thousands of books by mail to mainland Chinese buyers.

Lee, a British and Hong Kong citizen, was the fifth bookseller to go missing from the Causeway Bay Bookshop and Mighty Current publishing house responsible for producing salacious books critical of leading political figures in China, when he disappeared in December.

In January, one of them, Gui Minhai, a naturalized Swedish citizen, said he returned to China to surrender to police 11 years after fleeing a fatal drunk driving incident, despite receiving a two-year suspended sentence at the time. "They have generated lots of rumors in society and brought a bad influence", he said.

Lee, who appeared to be in good spirits in front of the camera, was interviewed on the mainland by a group of journalists from state-owned online publication the Paper, and Hong Kong's pro-Beijing newspaper Sing Tao Daily and television program Phoenix TV. "I deeply acknowledge my mistakes and am willing to be penalized".

Lee made similar comments to Hong Kong police and immigration officials, the government said Monday, suggesting he is sticking closely to a script aimed at deflecting scrutiny of the case.

There is more than one reason for the gloomy trend of tourism in Hong Kong, and while it is easy to say economic factors are to blame, the truth is the violent riots which have plagued the city during the Lunar New Year period, have affected Hong Kong not only inwardly, but also its worldwide reputation, discouraging in-bound Chinese tourists, in particular. "We still know nothing about their actual situation, whether they are being held under criminal detention, and at what location". But the police chief said the investigation was not yet over.

"If the market remains volatile and Chinese money can't get out, this means that it's going to be hard to get any sizeable IPO done", Philippe Espinasse, the former head of Asia equity capital markets at Nomura Holdings Inc. and author of "IPO: A Global Guide", said by phone.

His supporters believe the TV interview was done under duress.

China's Foreign Ministry, however, has said its law enforcement officials would never do anything illegal, especially not overseas, and called on foreign governments not to interfere in Hong Kong affairs.

However, Gui might be held to account and punished severely, he said.

Small groups of protesters marched through central Hong Kong Sunday, while activists expressed shock at the case that saw employee Lee Bo disappear last week.

One insider who declined to be named said the case has sent shock waves through the city's once-freewheeling publishing industry, which is now reeling under a chilling effect.

Reported by Wen Yuqing for RFA's Cantonese Service, and by Xin Lin for the Mandarin Service.