Pui Hin Poon scored the only goal of the match in the 47th minute, Tehran Times reported.
Shortly after, Iran put Hong Kong under pressure but the team’s players failed to capitalize on their chances.
Hong Kong will meet Japan, who defeated North Korea 2-1 in other quarterfinals, in the semifinals on Wednesday.
Iran started the campaign with a goalless draw against Saudi Arabia in Group B but defeated Vietnam 4-0 and Mongolia 3-0 in their following matches.
Reza Enayati’s team then beat Thailand 2-0 in Round of 16.
With more than 12,000 competitors from 45 nations and territories, the Asian Games has more participants than the Olympics.
Iran has sent 289 male and female athletes to the Games in 34 sports events.
TM/TT