I wouldn't raise my kids in HK unless I could provide them a sequestered environment like in Discovery Bay and ensure they study in international schools. Children shouldn't be expected to 'man up and take it' and suffering from racism can affect kids' development in negative ways.
I say this because I'm a former kid myself who has learned to mind my own business as much as possible. Even after all these years, I cannot love or accept racism but I can try to avoid putting myself in situations where I might face it. Some people talk about trains and busses; my solution is to never sit when I'm on one. Some people talk about not getting attention from staff at restaurants or stores; my solution is to shop at big brand foreign stores like Uniqlo and to avoid eating at local mom-and-pop establishments as much as possible. All of this isn't ideal. If the OP has an option, then he or she should do what's going to be in the long-term interests of their children.
A few days ago I was eating a snack (not a full meal) alone underneath the WanChai bridge that connects to the Immigration building. People who live in HK would know the area under the bridge is a pretty popular public place and lots of people eat, drink, sleep, and chat there. As I said earlier, I try to not do anything that can attract negative attention. Snack in one hand, phone in the other - and I made sure to stand at a distance and face away from the pavement so that no one could possibly get affected by my potentially covid-ridden breath. This happened some time around afternoon. I was not drinking or acting like a 'public nuisance' or talking loudly on my phone. Dressed quite normally for a weekend: sports pants and t-shirt and no bag. I was not being messy - the snack was in a small paper bag.
I was startled (to say the least) when three coppers (two in uniform and one in plain clothes) accosted me from behind and demanded to see ID. I gave them the ID immediately. While one was inspecting(?!) ID, the other jerked forward suddenly and patted me down. He did not inform me (I know he doesn't need permission) before doing so even though police guidelines say he needs to announce his intentions in order to not alarm the civilian. At this point, I was getting pretty nervous so I ask them why they're investigating me and not the numerous others also chilling in the vicinity. Police guidelines say cops need to be reasonably suspicious before they engage in a stop-and-search. He volunteered himself this absolutely rational piece of wisdom: "people who look like you commit more crimes, that's why I have to investigate you. You know we caught a brown skin guy today morning". By now, you've probably deduced the only reason I looked suspicious to the cops is because I'm brown-skinned. Police guidelines also suggest an escalation hierarchy with ID check at the bottom, followed by verbal questioning, followed by physical search. They had, of course, decided to give me the full monty from the very beginning.
Then they asked me for my wallet. So I emptied my wallet and handed it over. Emptied my pockets too. The tirade from the plain-clothes cop continued however. Here are some other nuggets:
"I don't want to be here today, I want to be in my office, but I am here because I need to protect Hong Kong people" - never mind the fact that I have PR but I know that's not enough to make me a hongkonger 
"don't get nervous haha. you're shaking haha" - never knew getting harassed by three people with guns is supposed to be a funny situation
TLDR: don't bring your kids here if you're not white or east asian and rich. That doesn't mean adults don't get affected by the insidious racism in this society but they can always be told to 'man up' by a few inconsiderate pricks on this forum.