"We support, respect and understand this decision," the body, which represents the semi-autonomous city at the State Council in Beijing, said in a statement.
Lam announced Saturday that a second reading of the bill would be delayed to restore calm after tens of thousands clashed with police and stormed government buildings on Wednesday.
A mass protest against the bill, involving hundreds of thousands of people, took place last Sunday and was followed by rallies on Wednesday that turned violent and left around 80 people injured. Another demonstration is reportedly expected to be held on Sunday.
Chinese Foreign Ministry spokesman, Geng Shuang, has blamed western politicians for instigating the protests.