Are you talking about the news block or the recent posts block?

If you are talking about the news block, it isn't showing the wrong time it is showing the server time, you have to manually edit the time variables for setlocale to reflect the time zone you want. If you are in the US but your server is in Hong Kong, then you need to modify it to reflect the crossing of the date line as well.

A search on php.net for setlocale will give you lots of info on what you need to modify.

If you are talking about the recent posts block, check your forum config for the time setting.