UPDATE 7-Hong Kong anti-government protesters gatecrash Halloween

Hong Kong police fired tear gas to break up anti-government protests in the central Kowloon district on Thursday, as masked demonstrators gatecrashed fancy-dress Halloween festivities in a party street on the other side of the harbor. Hundreds of protesters, many dressed in black and wearing face masks, which are now banned in the Chinese-ruled city, knelt down in Nathan Road, one of Kowloon's main arteries, using umbrellas to shelter from the tear gas grenades.

Some shone lasers at police shouting "Hong Kong people resist!", while others set fire to street barricades made with rubbish bins and other debris. The tactic has become familiar in five months of often violent unrest over perceived Chinese meddling with the city's promised freedoms.

Thursday's protests marked two months since police beat protesters on a subway train as they cowered on the floor, CCTV footage of which was widely shown online. Demonstrators on the main island were on the march towards the hilly, narrow streets of the Lan Kwai Fong bar district above Central, scene of a deadly New Year's stampede nearly 27 years ago.

Revelers and some protesters were already gathered, many in Guy Fawkes masks, others made up as clowns like the deranged title figure in the movie "Joker". One was dressed up as Hong Kong leader Carrie Lam in a dog collar and on a leash.

'LET PEOPLE HAVE FUN' The revelry soon became gridlocked after police tried to block off the tiny, enclosed street of Lan Kwai Fong itself, infuriating protesters and drinkers alike.

"Stop blocking the road. Fuck you," they shouted at the police. "We want to drink. Can't you let people have some fun for once?" "Chinese bullies!" another roared. "This is overkill. It's "Halloween!"

One reveler who gave his name as Gordon, 43, said: "I hope no police, no war tonight. Everyone is happy," as he walked away shouting "Liberate Hong Kong!". Police raised many blue warning banners reading "Disperse or we may use force", but it was not clear how the crowd could disperse in such a confined space.

"China is an evil Communist country," said Larry, 26, a social worker enjoying a drink in Lan Kwai Fong. "China is trying to put its dirty hands on Hong Kong, trying to stop our freedoms. No!" It was the first time protesters had targeted the party district. Typically, weekends and celebrations like Halloween see hordes of revelers spilling out of the bars and clubs on to the streets.

A stampede during New Year celebrations on Dec. 31, 1992, when thousands had gathered on streets slippery with beer and champagne, killed at least 20 people and wounded scores. RECESSION

As widely expected, Hong Kong slid into recession for the first time since the global financial crisis in the third quarter, according to data released on Thursday, weighed down by the increasingly violent anti-government protests and the protracted U.S.-China trade war. Questioned about government plans to relieve the pressure that the protests are putting on businesses in Hong Kong, Lam told a conference the circumstances warranted "exceptional" measures.

Her administration has pledged around HK$21 billion ($2.7 billion) of financial aid for businesses since August, partly from rent and fuel subsidies. The protesters say Beijing's is interfering more and more in Hong Kong, which returned from British to Chinese rule in 1997 under a "one country, two systems" formula intended to guarantee freedoms that mainland citizens do not have.

China denies meddling and has accused foreign governments, including the United States and Britain, of stirring up trouble. China said after a meeting of its top leadership that it would safeguard Hong Kong's prosperity and protect national security.

Some protesters in Hong Kong have thrown petrol bombs at police, lit fires and vandalized government buildings and businesses, especially those seen as pro-Beijing, during recent demonstrations. Police have responded with tear gas, pepper spray, rubber bullets, water cannon and sometimes live rounds.

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