Hi Flying Cog.
I bought my first car in HKG last year. Been here for 7 but in DB!
I was able to buy and insure the car on my UK licence, I did, however, go out and get a HKG permit PDQ.
The insurance company even gave me 60% NO Claims Discount based on my renewal notice from my UK insurer.
A word of caution though.... A cab nudged into the back of me in a traffic queue a couple of months ago. The cab driver wanted to settle, for cash, there and then. The cop who came even tried to get me to agree. In the end I took the car to a body repair shop and paid for the repairs myself and then threatened to take the cabbie to court if he didn't cough up. Nobody here likes claiming on their insurance. If I had claimed on my insurance, as we do in the rest of the world, I ran the risk of losing my NCD!
I guess the moral of the story is to get into car (only) insurance in HKG.
Good luck with your purchase.
Cheers... Max