Yesterday's vote was triggered after Beijing forced the disqualification of six rebel lawmakers who had swept to victory in citywide elections in 2016.
Four of the six vacant seats were contested in the tense by-elections which saw China loyalists hurl insults at young democracy activists near a polling station.
After the count ended this morning the democracy camp had only managed to take back two of the four seats.
It now holds a total of 26 seats in the 70-strong partially elected legislature.
However they will continue to be outgunned on other bills that require a lower threshold as they failed to regain the veto power they lost due to the disqualifications.
Activists accused Hong Kong's pro-Beijing government of political screening after it barred young pro-democracy leader Agnes Chow from standing in the by-elections because her party advocates self-determination for Hong Kong.
Chinese authorities are incensed at the emergence of activists advocating independence and also views calls for self-determination as part of a dangerous splittist push.
Chow's replacement, Au Nok-hin, held on to the Hong Kong Island seat.
"Winning isn't just about me but others in the democratic camp. I'm tired by grateful for the help from my team," Au told AFP.
However he described his feelings as "half half" because they camp had not regained all four seats.
The six lawmakers ousted from the legislature included former protest leaders and independence activists.
The legislature is fundamentally weighted towards Beijing as only half the 70 seats are elected.
The rest are selected by traditionally pro-establishment interest groups.
After the landmark 2016 vote the democracy camp held a majority of the directly elected seats, meaning it had the power to veto bills which need 50 percent of that block to pass.
After the disqualifications the democrats lost that veto power and failed to regain it in the by-elections.
It is the latest blow for the democrats who have come under increasing pressure after the failure of 2014's mass Umbrella Movement to win political reform.
Disclaimer: No Business Standard Journalist was involved in creation of this content
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