Hi you Mudcatters!
I always thought the line " and they all move honky kong" just meands that they are moving in a very crazy way. (what "crazy" means is up to your mind!).
I come from Germany and I think that what Charly Noble explained about this stanza taken from an old german song is not correct!
Von Kanton bis Macao, Hong Kong nach Luliao, The soldiers and the sailors, Dis sangen gleich ihr Lob, Fur dinge, dinge, ding-dong! Fur dinge, dinge, ding-out! Sie war ein sampan machen und kommt aus Hong-ki-kong!
This last Hong-ki-kong is just because of the fact you can't sing Hong Kong properly according to the songs melody. So there's just a new syllable added ("ki") which makes it easier to sing. This is fairly common in german songs and does not change the "meaning" of the word in any way, it's simply Hong Kong meant, although "Hong-ki-kong" is said