In Chinese culture, the fifteenth day of the seventh month in the lunar calendar is called Ghost Day and the seventh month in general is regarded as the Ghost Month (鬼月), in which ghosts and spirits, including those of deceased ancestors, come out from the lower realm. During Ghost Festival, the deceased are believed to visit the living.

On the fifteenth day the realms of Heaven and Hell and the realm of the living are open and both Taoists and Buddhists would perform rituals to transmute and absolve the sufferings of the deceased. Intrinsic to the Ghost Month is veneration of the dead, where traditionally the filial piety of descendants extends to their ancestors even after their deaths. Activities during the month would include preparing ritualistic food offerings, burning incense, and burning joss paper, a papier-mâché form of material items such as clothes, gold and other fine goods for the visiting spirits of the ancestors. Elaborate meals (often vegetarian meals) would be served with empty seats for each of the deceased in the family treating the deceased as if they are still living. In Hong Kong Bamboo Theaters are being installed and performances are given for the ghosts. (from wikipedia)