The Taoist belief of yin and yang extends through death, to life after death. A person's soul is believed to contain both the yin, aka "kui" (demon) and yang, aka "shen" (spirit), which finally part ways upon death. The kui returns to the center of the earth and the shen remains with the grave, family shrine and other world. When a person has died unfairly, is buried improperly or has a soul neglected by family, the kui can become agitated and return to this world hungry for attention, vengeance or worse. It is known as a Hungry Ghost. The Hungry Ghost Festival is a ritualistic celebration to ensure the appeasement of these dangerous spirits.
The Hungry Ghost Festival takes place during the seventh moon, on the fifteenth day of the Chinese Lunar Calendar, usually falling in either August or September. Although the festival actually lasts about a month, it is on the fifteenth day when the ghosts are said to be most present and hungry. It is common for people to avoid any air or water-based travel, swimming, weddings or residential moves. Children stay indoors, and red or black clothing is avoided as it may invite a wandering spirit.
The Chinese spirit world is considered to exist parallel to the living world, meaning that spirits have some of the same wants and needs as those still alive. This could take the form of food, attention and even material items. Ceremonies are performed, prayers are offered, and feasts are presented to appease the kui. It is also common for believers to burn paper objects as an offering and sacrifice in exchange for protection. This could include paper money or passports, known as hell money and hell passports, or paper replicas of material objects. If you see offerings placed on the streets or outside of homes, do not touch, move or destroy them.
Preparation for the Hungry Ghost Festival begins about a week or so beforehand and consists of performances such as operas and puppet shows -- for both the living and the nonliving. In some cases, there may even be a few rows of empty chairs at the foot of the stage that are reserved for the visiting ghosts. On the 30th day, the last day of ghost month, the gates of hell are closed. Priests chant to inform the spirits that their time is up and they must once again return to the underworld. Listen closely and you may even hear them wail as they return.