Someone in a Chinese language forum called CIC and was reportedly advised that they simply moved files to Hong Kong (and not just family class applications) because Beijing was significantly more backlogged. That sounds reversible and/or repeatable at any time, but I think there's more going on than just that, as it appears that Beijing hasn't just slowed down but has been at a complete halt since late January and that happens to coincide with Mississauga starting to send all China applications to Hong Kong and to Hong Kong only.
Also, March 25 apparently wasn't just one more day in an ongoing process of distributing files between Hong Kong and Beijing, but saw an e-mail notice go out to a huge number of people saying their applications were being transferred to Hong Kong. I've looked through the Chinese forums and there aren't any reports of anyone NOT having their application moved. Everyone from July applicants to January applicants say they got the email saying that henceforth their office is in the former British colony (most Beijing applicants who mailed their applications in June or earlier got their visas in January or earlier).
Bad news for Hong Kong applicants is that they may be put on hold to do these incoming Beijing files until the wait time (based on when first sent by Mississauga to either Hong Kong or Beijing) for a Beijing and Hong Kong applicant is roughly similar. I can't imagine that these Beijing applicants would have to start over in terms of wait time, because it would just be too harsh for those who applied last summer to lose a half year in queue.
One thing I am not inclined to doubt with respect to that reported call with CIC is being told that 7 to 9 months should be considered more like the average than the 80th percentile, given the situation.
