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I can't verify this part first hand, but they indicate in the article that before the 2018 model iPhone XS was released, the region code of Hong Kong was “ZP,” but it was changed to “ZA” after the newer model iPhone XS was released.

So users with newer devices would be impacted.

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I managed to find a colleague with a newer iPhone, with ZA in the model, and Hong Kong as Region. The flag appears when language is set to English but disappears when language is set to Traditional Chinese (Cantonese). The conditions to have the flag disappear are not that widespread though, but the news is indeed real :-)

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