Kung Hei Fat Choy! If you're new to Hong Kong, you may be wondering what exactly this phrase means, and why you keep hearing it in every shop, restaurant and market in the city. The obligatory four-word greeting, always said with gusto, wishes others a happy and prosperous new year, according to the lunar calendar. On February 7 this year, we say good-bye to the Year of the Pig and welcome in the Year of the Rat.

Chinese New Year, or Lunar New Year, is hands-down the biggest holiday in Hong Kong, and the most important time of year for Chinese people all over the world. According to legend, the origins of Chinese New Year began in ancient China when the Nian, a mythical beast who preyed on humans, came down from the mountains once every twelve months. Villagers believed that the Nian was sensitive to loud noises and scared of the colour red, so they lit noisy firecrackers and spread the colour red around the town with lanterns and decorations. Many of these customs evolved into modern Chinese New Year practices. For instance, red is widely worn and Hong Kong hosts a gigantic fireworks display.

Traditionally, however, Chinese New Year was a time to celebrate the harvest and wish for prosperity in the coming year. Over the centuries, it has become a celebration of the new lunar year and of Chinese rituals, traditions and culture. For locals, Chinese New Year is first and foremost a time for family. Much like Christmas in the west, people spend most of the holiday on mandatory family visits, festive feasts and gift giving, as well as avoiding any potential bad luck by abiding by a myriad of superstitions.

One of the best parts about Chinese New Year is the custom of giving out red packets, called lai see. These packets contain varying amounts of money. The strict rules that used to govern their dispensation are much more relaxed these days, so almost everyone is set to receive one. The only rule to remember is to give in notes totalling even numbers, as odd numbers are given at funerals. Also, the numerical value cannot add up to four, since this is an unlucky number, much like the number thirteen in western cultures, because its homophone in Cantonese is death. (Many buildings go so far as skipping the fourth floor).

Chinese New Year always starts on the first day of the first lunar month. As this is set by the phases of the moon, the date on the western calendar varies from year to year. The celebration actually lasts 15 days, but the first three days are the most widely recognized and are public holidays in Hong Kong. If you think Hong Kong is normally bustling by day and sparkling by night, you're in for a treat.

On Chinese New Year's Eve, (February 6), people visit flower markets to pick up brightly colored flowers to bring good luck. Hong Kong's largest flower market is set up in Victoria Park in Causeway Bay. Also on this day, families gather for a feast. Houses are cleaned to sweep away the bad luck of the former year and to make homes ready for good luck in the new year. All knives and scissors are put away, as they are said to cut away good luck, and homes are decorated in the lucky colour red and with auspicious Chinese sayings.

The first day of the New Year, (February 7), is set aside for welcoming all types of deities. Many people go to the city's temples to pray to the gods for good fortune in the coming year. A few temples in Hong Kong are open 24 hours just so followers can be the first ones to pray when the clock strikes midnight and the New Year begins. Two such temples are the Che Kung Temple (MTR: Tai Wai) and the Wong Tai Sin Temple (MTR: Wong Tai Sin).

From the moment the New Year begins, anything symbolizing bad luck is avoided. Some believers, especially Buddhists, do not eat meat on the first day to ensure longevity. All cleaning is halted because cleaning during the holiday signifies sweeping away all your family's good fortune. Additionally, people visit the senior members of their extended families to pay their respects. Lion dances and fireworks are held to welcome in the New Year and scare off bad spirits. On the second day of the New Year, family visits continue because on day three, they are avoided at all costs, as this day translates as 'red-mouth' day, meaning that it is likely to be full of arguments and insults.

While many modern-day Chinese may not believe wholeheartedly in all the Chinese New Year superstitions, they are practiced as customs that provide continuity between the past and the present and continue to make the holiday a special one.

New Year Superstitions

• Buying books is said to bring bad luck because the Cantonese word for 'book' is a homonym for 'lose'. Along the same lines, don't buy new shoes since it is a homonym for 'rough'.

• Talking about death is considered inauspicious.

• Since the Cantonese word for hair sounds like 'prosperity', cutting your hair over the New Year is akin to cutting away your prosperity

• Wear colourful clothing, especially red for good fortune. Avoid black and white clothing - black is bad luck and white is worn at funerals.

• Pay off all your debts or else you're doomed to be in the hole the entire year, and don't lend any money, or you'll be lending all year long.

• Eat sweets to bring a sweeter year.

• Open windows to let the New Year, and all its new fortune, come in.

• Decorate with kumquats, which symbolize prosperity.

Chinese New Year Happenings

There are a number of Chinese New Year events that visitors can easily join, whether this is your first Lunar New Year or you are a seasoned celebrator. Find more information at www.discoverhongkong.com

Feb 1-6 Flower Markets Pick up colourful flowers for good luck and prosperity at either Victoria Park in Causeway Bay or Fa Hui Park in Mong Kok, 6pm-9pm. Free admission.

Feb 7 Night Parade Usher in the New Year with performers and dragon dancers. Starting at the HK Cultural Centre in Tsim Sha Tsui, the parade proceeds along Salisbury Road to Mody Lane, makes a U-turn and ends at New World Centre, 8pm-9.30pm.

Feb 7 & 10 Chinese New Year Cup Join football fans for the annual soccer tournament at Hong Kong Stadium in Causeway Bay. See www.hkfa.com for more information.

Feb 8 Fireworks Display View the amazing Lunar New Year fireworks display over Victoria Harbour from Central or Tsim Sha Tsui, 8pm.

Feb 9 Race Day Test your luck in the Year of the Rat at the horse races at Shatin Racecourse in the New Territories, 12.30pm. Bring your passport along for a $150 Tourist Badge for access to the Hong Kong Jockey Club's Members Enclosure.