TAIPEI -- The streets of Taipei are beaming a festive vibe in July on the Chinese lunar calendar, which runs from the middle of August to early September this year.

In front of shops and at the doors of residential buildings, altars are set up, food and gifts presented and incense burned. For the whole period people of Taiwan will be joining folks in the rest of China in celebrating the Zhongyuan Festival, also known as China's ghost festival.

"The Zhongyuan Festival is not strictly religious. We are not worshipping gods but the spirits of our ancestors," said Hsieh Yuan-chang, a local artisan who is in his seventies.

Hsieh is familiar with the Zhongyuan rituals because his father used to be a head chef for banquets during the festival and he himself specialized in producing rice-based offerings for the festival.

"Most rituals of the Zhongyuan Festival were brought here by our ancestors from the mainland. By practicing them we know where we come from," said Hsieh. He is the 18th generation of a family that migrated from Zhangzhou in Fujian Province to Taiwan.

The port city of Keelung in northern Taiwan is known for its grand celebration of the Zhongyuan Festival.

On the evening of July 14 on the lunar calendar this year, which fell on Tuesday, a large parade drew a huge crowd from across the island to see dragon and lion dances, walks on stilts, and particularly colorful floats sponsored by prominent families in the local community.

Each family showcased its glorious past through the decorations of their float. For instance, the family of Guo emphasized the legacy of Guo Ziyi, a well-known general during the Tang Dynasty (618-907).

The peak of the parade was reached at 11 pm when lit paper lanterns of various shapes were pushed into the sea, carrying people's best regards to the other world.

Following all the impressive celebrations Tuesday, the main ceremony of the Zhongyuan Festival occurred on Wednesday evening, which was July 15 on the lunar calendar.

A four-floor-high altar was erected on a small hill in the city's downtown area. In the square at the foot of the altar, long tables were set up and meat dishes, vegetables, fruits and other offerings served. All 15 prominent families of Keelung set up display boards introducing their hometowns on the mainland and recalling how they migrated to Taiwan.

Li Yi-lung, an 80-year-old Keelung native, traveled from Taipei to attend the ceremony.

"The Zhongyuan Festival has been celebrated this way for generations. I do hope younger generations will carry forward this tradition, and keep in mind our cultural roots," he said.