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Yes, Faye Wong sings the cover of "Dreams" in Chungking Express. The song is titled "Dream Lover" (Chinese: 夢中人; Cantonese: Mung Chung Yan) and is sung in Cantonese. It was released on her 1994 album Random Thoughts. In the film, the song plays during a scene where Faye is in Officer 663's apartment and is featured prominently over the end credits. Note that the song playing repeatedly during the cleaning montages is actually "California Dreamin'" by The Mamas & The Papas, not "Dream Lover."
Yes, the actress and singer Faye Wong does sing the cover of "Dreams" in the 1994 film Chungking Express.
Here are the specific details:
The summary conflates the usage of 'Dream Lover' with 'California Dreamin''. The latter is the song that plays repeatedly during the cleaning montages, while 'Dream Lover' is primarily the end credits anthem.