Chinese folklore features a rich variety of ghosts, monsters, and other supernatural creatures. According to traditional beliefs a ghost is the spirit form of a person who has died. Ghosts are typically malevolent and will cause harm to the living if provoked. Many Chinese folk beliefs about ghosts have been adopted into the mythologies and folklore of neighboring cultures, notably Korea, Japan and Southeast Asia. Beliefs about ghosts are closely associated with Chinese ancestor worship, where much have been incorporated into Taoism. Later beliefs were influenced by Buddhism and in turn influenced and created uniquely Chinese Buddhist beliefs about the supernatural.
Traditionally, the Chinese believed that it was possible to contact the spirits of deceased relatives and ancestors through a medium. It was believed that the spirits of the deceased can help them if they were properly respected and rewarded. The annual Hungry Ghost Festival, celebrated in China, Taiwan, Hong Kong, Malaysia, Singapore, and elsewhere in the Chinese diaspora, is dedicated to performing rituals to honor and remember the spirits of the dead. On this day ghosts and other supernatural creatures come out from the Underworld and move among the living. Families prepare food and other offerings and place them on a shrine dedicated to deceased relatives. Incense and paper money are burned and other rituals are performed in hopes that the spirits of the dead will protect and bring good luck to the family.
Ghosts are described in classical Chinese texts, and continue to be depicted in modern literature and movies.
Guǐ (鬼) is the general Chinese term for ghost, used in combination with other symbols to give related meanings such as guilao (鬼佬), literally "ghost man", a pejorative term for foreigners, and mogwai (魔鬼) meaning "devil". Characters such as 魇 (yǎn) meaning "nightmare" also carry related meanings.
Yan Wang (Chinese: 閻王), also called Yanluo (Chinese: 閻羅) is the god of death and the sovereign of the underworld. He is also the judge of the underworld, and decides whether the dead will have good or miserable future lives. Although ultimately based on the god Yama of the Hindu Vedas, the Buddhist Yan Wang has developed different myths and different functions from the Hindu deity. Yan Wang is normally depicted wearing a Chinese judge's cap in Chinese and Japanese art. He sometimes appears on Chinese Hell Bank Notes.