To show who is right and who is wrong in this debate here are links to relevant pages of the HK Immigration Department website:
Symbols on the old ID card
http://www.immd.gov.hk/ehtml/topical_3_2.htm
Symbols on the new Smart ID cards
http://www.immd.gov.hk/ehtml/hkid_frontinfo.htm
"Who can enjoy the Right of Abode in HK"
http://www.immd.gov.hk/ehtml/topical_3_4.htm
This defines "Eligibility for a HK Re-entry permit" which is the criterion for having *** on the ID card.
http://www.immd.gov.hk/ehtml/hktraveldoc_2_rp.htm
This defines the criteria which will be taken into account when considering an application for Chinese nationality (a criterion for a Re-entry permit) by naturalization:
http://www.immd.gov.hk/ehtml/chnnationality_4_1.htm
There is no race-based criterion.