There are lots of festivals, but I feel the Hungry Ghost Festival is the most mysterious. 

     The 15th day of the 7th lunar month is the Hungry Ghost Festival as well as Zhongyuan Festival, and the Yu Lan Pen festivals. It used to be a religious ceremony in India. The Buddhists hold the Yu Lan Pen Festival in memory of their forefathers. The Yu Lan Pen aims to encourage the Buddhist's spirits, and because it is consistent with the Chinese's custom, it becomes has become very popular in China.
     When At the beginning of the festival beginning, a sacrificial alter, which is put on a chair, is prepared by the Buddhist priest either at street entrances or in front of villages. In front of the chair build the statue of the King of Hell Di Zang is placed. Under it are placed plates of flour-made rice rice flour, and peaches.  After noon, all the tributes sacrifices, such as pigs, sheep, chickens, cakes and fruits are displayed on the desk. Then the Buddhist priest puts on places a triangular flag with special patterns upon it. After the rite starts with solemn music, the priest strikes the bell to call the souls back. And the other monks sing songs of incantation. He threw The priest throws the rice and peaches into the air in all directions in order to distribute them to the souls. At night, incense is burnt burned in front of at the door of each house. The more incense, the better; because the amount of incense stands for represents the degree of prosperity. Besides, Additionally, in some places people let lanterns float lanterns on the water. Such lanterns are made into the shape of a lotus, and the lantern is held up by boards. According to the Chinese tradition, the lanterns are used for to guide the ghosts or spirits. Ghosts find their way back under the lanterns' guidance. On the day of the festival, all shops are closed to make way for the ghosts. In the middle of each street, people burn incense in at every 100 steps apart far from one another, with fresh fruits and sacrifices. And The monks sing songs that only the ghosts can understand.
Nowadays, the Ghost Festival is places more emphasis on filial piety and philanthropy. It no longer has religious meaning, its just a festival for remembering ancestors and relatives who passed away and for family gatherings.