Many who celebrated the return to Chinese rule say they would rather identify with their city than with their nation.
Proteste in Hongkong 05.10.2014
Hundreds of pro-democracy campaigners are camped out on the streets of Hong Kong ahead of a government deadline for them to withdraw.
Many suspect that police will try to remove them by force in the coming hours.
Hong Kong's leader says public offices and schools will open on Monday, and social order will be restored.
The protesters are angry at China's plans to vet candidates when Hong Kong holds elections in 2017.
They are demanding that the central government in Beijing allow a fully free vote for the territory's leader.
Protest groups have denied blocking entrances to government headquarters and insisted civil servants could return to work without obstruction.
The BBC's John Sudworth in Hong Kong says some want to hold out for tangible gains, while others fear tear-gas, rubber bullets and arrest, and think it is time to turn to dialogue.
Earlier the groups said they would agree to the government's offer of talks if attacks on them were investigated and protest sites were not forcefully cleared.
But discussions about opening a formal dialogue faltered after the sides failed to agree on basic principles on which the talks should be held.Hope for talks
Our correspondent says numbers have dwindled in recent days, as many do not relish a brave last stand in the face of an expected forceful eviction by police.
Hong Kong Chief Executive CY Leung had called on the protesters to end the demonstrations, warning that police had a responsibility to take all actions necessary to resume social order.
The Hong Kong Federation of Students (HKFS) said it had always maintained access to the government headquarters, adding that there was no reason for employees not to return to work on Monday.At the scene: Julianna Liu, BBC News, Mong Kok
After days of tension, a measure of calm has come to the commercial district of Mong Kok, the site of sometimes violent confrontations between pro-democracy activists and counter-protesters.
Earlier, there were scenes of confusion when, under pressure from an unfriendly crowd, a student leader announced on live television that demonstrators would pack up and leave the area, moving to the main protest site in Admiralty and ceding ground to their opponents.
It was seen as a blow to the sit-in movement.
That group left. But others refused to leave and soon took its place.
Members from a more radical pro-democracy group called Civic Passion arrived, as did lawmaker Raymond Wong and his supporters.
For now, Mong Kok remains a stronghold for demonstrators, with hundreds sitting on the ground demanding democratic reforms.
Both the Hong Kong government and protesters indicated on Sunday that they were willing to start talks to find a resolution to the week-long standoff.
AFP news agency reported that student leader Lester Shum had met mid-ranking officials to set conditions for a meeting, but apparently without result.
Talks had originally been scheduled for Saturday, but protesters withdrew after the attacks on Friday night, which were mainly in the Mong Kok district.
Some of the protesters in Mong Kok appeared to be leaving the site on Sunday, saying they were joining the main protest group outside government buildings in the Admiralty district.
However, others decided to stay put.
Thousands of people held a rally overnight, defying calls from the Beijing-backed authorities for them to disperse.
Crowds chanted: "Democracy now! Democracy in Hong Kong!" as speakers from the pro-democracy movement urged them to persist in their campaign.'Doomed to fail'
What began as a peaceful sit-in to demand democracy on 22 September escalated last Sunday when riot police used tear gas against unarmed students converging on the government headquarters.
The police response was widely condemned as an overreaction, prompting thousands of people to join the rallies and block key areas, including Hong Kong's financial district.
At the heart of the row between the protesters and the government is China's insistence on tight rules on nominations for candidates wanting to stand for election in 2017.
The protesters say the restrictions mean the polls will fall short of the free elections they are seeking and have called for Mr Leung to step down.
But the central government in Beijing has thrown its full support behind Mr Leung, calling the protests illegal and "doomed to fail".Hong Kong democracy timeline
- 1997: UK gives Hong Kong back to China under a 1984 agreement giving it "a high degree of autonomy" for 50 years
- 2004: China says it must approve any changes to Hong Kong's election laws
- June-July 2014: Pro-democracy activists hold an unofficial referendum on political reform; both sides hold large rallies
- 31 August 2014: China says it will allow direct elections in 2017 but will pre-approve candidates
- 22 September 2014: Student groups launch a week-long boycott of classes
- 28 September 2014: Occupy Central and student protests join forces and take over central Hong Kong
- 2017: Direct elections for chief executive due to take place
- 2047: Expiry of current agreements
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