Mr Li apologised publicly to the students and their parents last weekend after five Shenzhen government departments last month asked schools to ensure students watched the film Life Translated, by Li's 25-year-old daughter, Li Qianni .

The Shenzhen Party Committee, which met yesterday to discuss the incident, said Mr Li never asked for special treatment for the movie.

It said authorities recommended the film to students on artistic merit. But it admitted the promotion of the film had been too forceful and said Mr Li lacked sensitivity and 'failed to resist the promotion with determination'.

The committee said Mr Li failed to understand properly regulations put out by the Central Discipline Inspection Commission, the party's top anti-graft organ. The regulations state that spouses and children of high-level officials are not allowed to conduct business activities within the sectors overseen by the official.

Mr Li is Shenzhen's top official in charge of propaganda, overseeing the media, culture and entertainment industries in the city.

Some of the city's residents said Mr Li had been let off too lightly. 'The [former] Hong Kong financial secretary [Antony Leung Kam-chung] had to resign just because he bought a car without making a proper declaration. How come Mr Li can still hold his position?' said businessman Shi Tao .

Saleswoman Qin Fangli said Mr Li's apology was not sincere.

'The Shenzhen Special Zone Daily is still serialising [his daughter's] book. I'm not a literary critic, but I really doubt that if she was not Mr Li's daughter, the paper would ever publish it,' she said.