Translation:The teacher's home is in Hong Kong.
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Why is duolingo always suggesting the correct words? Basically most exercises are equivalent to "build an english sentence out of the following suggested words". Almost impossible to get it wrong even if i didn't understand any of the chinese. Why not let us translate by ourselves?
Because the given sentence is about the teacher's home. Not about the teacher.
"His car has Hong Kong number plates" also means the same thing as "He lives in Hong Kong" or "He is a citizen of Hong Kong" or "He is seen daily at that famous Hong Kong club"... All might convey a similar sentiment (that the person lives in Hong Kong). But ultimately, the subject of every sentence is different.