GRUNGE, Hongkong-style, arrived last night. So did romance, humour and lashings of talent as the Hongkong Polytechnic's Swire School of Design presented its 1993 Graduation Fashion Show. A packed audience at the Grand Hyatt Hotel's ballroom saw 14 collections from the latest crop of graduates, with most of them confirming that the Swire School is the region's foremost breeding ground for the designers of tomorrow. Garment recycling, grunge and traditional Chinese crafts were among the sources of inspiration which infused the collections with a freshness and inventiveness largely absent from the current fashion scene. Far from being obsessed with the '60s and '70s, the graduates concentrated on versatility and exciting use of fabric, combined with a spirit that may finally see the emergence of a true Hongkong look. It was at its most infectious with Herbert Chan Wai-ming's contemporary separates for men and women, modelled by ''real'' people. Odi O Wai Man's hand-painted dresses and separates collected the evening's most coveted prize - the Lane Crawford Trophy for the Most Creative Collection. There was no doubt about the audience's favourite: Yvonne Chow Mung-ching, whose sexy menswear came with muscular male models sporting blue lipstick, top-hats and bovver boots.