I came to HK 2.5 months ago and I have a 3 year old, and an almost 1 year old--- what I've noticed here is that yes, people touch them (especially the baby) way more than in the US (read: not at all) but even if I don't feel completely at ease with it, I play along and let them, especially since my son smiles and laughs when they do. At Harbor City, one Chinese lady was so pleased and touched that I let her interact with my son (stroking his cheek, holding his hands) that she repeatedly thanked me, I mean repeatedly, for letting her touch him, saying that "most people don't want you to touch their babies." I get it. Most of the people doing the "baby touching" don't mean any harm, and they may not understand another culture seeing it as a hygiene issue, so I try to be understanding of that.
What I still feel extremely uncomfortable about is the photo-taking. My children have had their photos taken numerous times, but not a single time has the camera-wielding person ever asked permission. I just feel weird knowing that my kids' pictures are somewhere on a strangers computer! We visited Thailand and at the Bangkok airport a group of 5 Arabic-speaking MEN! took pictures of my son. In the US, a group of men doing that would be arrested by the police haha!!
But we used to live in Saudi Arabia and Bahrain, where the baby love is rampant... so I try to be understanding. At restaurants there, the employees (Indians, Bangladeshi, Filipino) whisked our baby away to the kitchen! You feel a bit paranoid at first, but then you realize it's OK. We used to go to a Lebanese restaurant and all the workers were men, and it was great fun to see our little infant (at the time) daughter getting held by all these macho guys.