A COLLECTION inspired by Chinese folk traditions took the coveted Overall Prize at last night's 1993 Young Designers' Show, the final and, as usual, most popular event in Hongkong Fashion Week. Nearly 1,500 spectators at the Hongkong Convention and Exhibition Centre in Wan Chai saw the top honour go to Wong Sin-yee whose autumn-winter separates for men and women were fashioned from earth-toned ''mud'' silk accented with graphics and embroidery, or left sheer. Ms Wong, who at 29 was the oldest of the 19 finalists - a record number for the YDS - won $15,000 in prize money, a trophy and a round trip to Paris. Trained at the Hongkong Polytechnic's Swire School of Design, where she took her BA degree in fashion design in 1989, Ms Wong furthered her training in Paris and is designing for a local firm. Also collecting honours last night were: Knitwear Group winner Amy Mok Wai-mui, 25, whose blue and grey pure wool range for women featured big shawls, jackets and capes over slim skirts or pants; Non-Knitwear winner, Barney Cheng, 26, who brought glamour-plus to the show with sumptuous evening gowns in sand and gold - his inspiration came from Chinese opera and Cantonese weddings - and Wool Prize winner Samantha Fung Shui-lan, 28, who used rich colour combinations and hand-crocheted patterns to elegant effect. Judging the contenders on creativity, saleability, suitability of fabrics and hanger appeal, were eight judges including French designer Michel Klein and editor-in-chief of Vogue Paris, Colombe Pringle. Two other special guests were Manfred Kronen, chairman of the world's biggest fashion trade fair, Igedo Dusseldorf - Hongkong will be in limelight at Igedo from March 7-9 - and German supermodel-in-the-making Sophie Rosentreter, who took part in a segmentdevoted to collections by former YDS winners. ''I started modelling six months ago and am now working every day,'' said the stunning 17-year-old from Hamburg who has already done the honours for Karl Lagerfeld and appeared on the cover of several of the world's top fashion magazines.