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"We are gathered here with deep respect to remember his contribution to the independence and liberation of China, the development of the country and welfare of the people," said Hu at the ceremony.
State leaders Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang,He Guoqiang and Zhou Yongkang attended the ceremony presided over by Premier Wen Jiabao.
Liu worked hard for the cause of Party and people all his life, making great contribution to the revolution and construction of socialism in China, Hu said.
Born in 1898, Liu joined the Communist Party of China (CPC) at the age of 23 and led several important trade union strikes in the1920s.
He marched with the Red Army in the Long March (1934-1936) but, in the middle of it, he was sent to north China that was ruled by then Kuomintang government and led the underground resistance to the Japanese invasion.
In 1945, Liu was elected a member of the CPC Central Committee Political Bureau and a Central Committee secretary.
When the People's Republic of China was founded in 1949, Liu was elected the vice chairman of the central government. He was president from 1959 to 1968 and introduced many pragmatic economic policies.
Liu was removed from all his positions in 1968 during the Cultural Revolution and died in 1969, denounced as a traitor and an enemy agent. In 1980, his reputation was rehabilitated.
"We shall learn from his thoughts, way of working and virtue that would encourage all Party members and people to have confidence and work hard to carry on the cause of revolutionaries of older generations," said Hu.
He urged people to learn from Liu to be loyal to the Party and the people, to always seek truth from facts, to be open to innovation, to be good at applying Marxist principles in China's reality, to be willing to correct mistakes, to put Party and people first and to serve the people heart and soul.
Hu recalled Liu's great and glorious life and praised his achievements, Wen said. "It is of great significance to guide the people to inherit the ideal of older revolutionaries and create a new stage of socialism with Chinese characteristics."