Anecdotes from this forum and other friends of mine lead me to believe the answer is yes, but you must declare you have "Chinese citizenship" on your HK Permanent Residence application.
The logic is the way different rules for determining whether one is a Chinese citizen apply for the mainland and HK. Under the mainland rules, you lost Chinese citizenship when you obtained a foreign citizenship. Also, if you ever applied for a mainland visa, your hukou may have gotten cancelled as the Chinese authorities would be aware you have obtained a foreign citizenship during the visa application. However, under HK's rules you only lose your Chinese citizenship if you inform the HK authorities that you have obtained a foreign citizenship. This means that when you enter HK as a non-permanent resident, the mainland rules still apply, so you are not a Chinese citizen, but the moment you become a HK permanent resident, the HK rules apply, and you can claim you have Chinese citizenship and HK will give you a HK passport and home return permit.
I guess this is a loophole...? I have no idea if it will work. Of course if you were just born in China but never had Chinese citizenship (ie. you don't racially look Chinese) I doubt it would work.