Fragrant Harbour

The most popular theory is that Hong Kong （香港） used to produce incense.
Hong Kong used to be a place to produce incense and it's a harbour. (Harbour with "u" as it was a British colony till 1997)
Fragrant Harbour is the direct translation of the name "Hong Kong".

Hong = Aromatic=香; Kong = Harbour =港

The bay from which incense was transported became known as Hong Kong, so a nearby village took the name of Hong Kong Village. The name Hong Kong first appeared in the Yue Da Ji, which was printed in the Ming Dynasty. When the British arrived at Stanley, Chen Qun, a local Hakka (we'll learn about Hakkas later) told them in Hong Kong Village that the place was called Hong Kong (which is Tanka dialect for Xianggang). The British assumed that Hong Kong referred to the whole island, and the name stuck.
Source: WikiBooks and I am a person from Hong Kong

Fragrant Harbour is Hong Kong. Hong Kong is Fragrant Harbour.

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