Hong Kong schools, daycare centers, cargo terminals, ferries and buses suspended operations while more than 30 flights were cancelled Sunday as typhoon Koinu passes near the island Sunday morning.

The storm's maximum sustained wind speed of 145 kilometers per hour prompted authorities to issue a "T8" alert, the third-highest storm warning signal.

Hong Kong's weather observatory on Sunday warned of strong winds and intense rain bands as Koinu moved towards the Pearl River Estuary and entered within 100 kms south of the city.

"Koinu will be closest to Hong Kong tonight, skirting about 70 kilometers south," the Hong Kong Observatory said, warning the public to avoid low-lying areas in case of a storm surge.

Before moving to Hong Kong, Koinu had grazed nearby Taiwan, bringing torrential rain and record-breaking winds to its outlying Orchid Island.

It left at least one dead, and knocked out the power to hundreds of thousands of homes.