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Also during the festival days, millions of "hungry ghosts" will ascend from the depths of hell and visit the human world to accept offerings from Chinese believers in the after-life. paper boats and lanterns are set afloat on the water to guide the "lost ghosts".
The belief is that during this month, the gates of hell are opened up to allow ghosts, particularly those that reside in the lowest levels of hell because they have no one to take care of them, to ascend to the world of the living and accept offerings from anyone who may make them. Propitiating the ghosts with food and gifts will earn their goodwill -- and perhaps good fortune; incurring their wrath will only bring bad luck, or so the Chinese believe.
Also, believers do not embark on any new enterprises during the festival days. It is a time to play safe. Children are cautioned not to stay out too late for fear of coming into contact with the freely roaming spirits.
The festival has its roots in a Buddhist parable that has origins in India. The Ullambana Sutra narrates the story of a Buddhist monk, Mahamaudgalyayana, who instructs his mother to provide food and shelter to wandering Buddhist monks, and gives her some money. But being greedy, she appropriates the money for herself, and is then consigned to the depths of hell. There, she wanders as the Hungry Ghost: her belly is big, and she is forever hungry, but her throat isn't wide enough for her to ingest any food. The dutiful son rescues her after battling the demons of hell, and initiates the ritual of making offerings to those who who have slipped the surly bonds of earth.
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