Cyberport

Cyberport
Company type	Business park, Digital technology ecosystem
Industry	Information technology, Digital entertainment, Fintech, Esports
Founded	2004
Headquarters	Southern District, Hong Kong, Hong Kong
Area served	Hong Kong
Key people	Simon Chan Sai-ming (Chairman since April 2022)
Products	Office towers, hotel, retail and entertainment complex, incubation programme, esports arena
Owner	Hong Kong SAR Government (via Hong Kong Cyberport Management Company Limited)
Website	www.cyberport.hk

Cyberport is a business park situated in the Southern District of Hong Kong, encompassing four office towers, a hotel, and a retail and entertainment complex. It brands itself as a digital technology ecosystem home to more than 1,800 digital and tech enterprises, with approximately 800 located on-site and around 1,000 operating off-site.

The development has been subject to criticism due to the Hong Kong government awarding the project directly to property developer Richard Li Tzar-Kai without an open tender process, alongside concerns about its reliance on income generated from "ancillary residential" projects. Nevertheless, Cyberport has grown into a premier digital technology hub and plays a significant role as an incubator fostering entrepreneurship within Hong Kong.

Digital technology ecosystem

Among Cyberport’s start-ups, six have achieved "unicorn" status: GOGOX, KLOOK, WeLab, TNG, Animoca Brands, and ZA International. These companies operate across sectors such as fintech, smart living, digital entertainment, and esports. Overseen by Hong Kong Cyberport Management Company Limited, which is fully owned by the Hong Kong SAR Government, Cyberport has been active since 2004 with core focuses including fintech, smart living solutions, digital entertainment, esports, artificial intelligence, big data analytics, blockchain technology, and cybersecurity.

Cyberport hosts the largest fintech cluster in Hong Kong, comprising roughly 400 firms. A notable milestone includes Bowtie Life Insurance becoming the city’s first virtual insurer authorized under the Fast Track scheme in 2018. Additionally, members such as Zhong An and WeLab were among the initial eight companies granted virtual banking licenses.

To advance the esports sector, Cyberport inaugurated Hong Kong’s largest professional-grade esports arena in July 2019 within Cyberport Arcade. It also introduced initiatives like the Esports Industry Facilitation Scheme and Esports Internship Scheme that provide financial incentives to support industry events and internship opportunities.

By February 2022, over 1,000 technology start-ups had benefited from the Cyberport Incubation Programme since its inception in 2005. The Cyberport Macro Fund—established in 2016 to invest in local start-ups beyond seed funding and around Series A—received an additional HK$200 million injection to expand its investment capacity to cover Series A and subsequent funding rounds. As of July 2022, the fund had allocated approximately HK$168 million across 22 start-ups with a co-investment leverage ratio of 1:8.

On 25 March 2022, Simon Chan Sai-ming was appointed chairman of Hong Kong Cyberport Management Company Limited for a two-year tenure commencing on April 1.

Cyberport consists of four development phases offering a combined total of 119,000 square meters of office facilities. By May 2021, occupancy rates consistently hovered around 90% for office spaces and approximately 95% for co-working areas. The number of applications submitted to the Cyberport Incubation Programme grew significantly from fewer than 100 annually before 2011 to over 600 each year in recent times.

Project background

In March 1999, the Hong Kong government unveiled plans for "Cyberport," aiming to enable local enterprises to leverage the rapid expansion of the Internet. The initiative sought to foster growth in information technology and multimedia sectors, allocating only one-third of the site for residential purposes to help fund the development. Cyberport was envisioned as a startup incubator for ICT firms, providing office accommodations, financial support, training programs, seed funding, and access to investment networks.

The government collaborated with the Pacific Century Group (PCG) to develop a site at Telegraph Bay, Pok Fu Lam, Hong Kong Island, with an overall investment of HK$13 billion. This project, introduced in the 1999 budget by then-Financial Secretary Donald Tsang, intended to revitalize Hong Kong’s economy following the 1997 Asian financial crisis by establishing a premier cluster of IT and service enterprises. Its location near the proposed "Teleport" facility in Chung Hom Kok was expected to form a vital telecommunications nexus. The complex included a multimedia network, telecommunication infrastructure, a media lab, cyber library, IT support services, along with educational and leisure amenities for visitors.

According to the agreement, PCG was responsible for constructing an office complex, a shopping arcade, and a 173-room hotel dedicated to management outsourcing. Ownership of these assets would be transferred to the government without charge. In return, PCG received land designated for residential development covering 70% of the site and retained 64.5% of profits from property sales.

The phased construction of Cyberport’s four office towers, The Arcade shopping center, and Le Meridien Cyberport Hotel was finalized between 2002 and 2004. Meanwhile, approximately 2,800 residential units were built from 2004 through 2008.

Project awarded without competitive bidding

The government's choice to assign the project to Pacific Century Group (PCG), owned by Richard Li, son of Hong Kong’s wealthiest individual Li Ka-shing, generated significant debate. The absence of an official open tender process attracted criticism over transparency concerns, with competing developers claiming exclusion. To manage implementation, three private entities—Hong Kong Cyberport Development Holdings Limited, Hong Kong Cyberport Management Company Limited, and Hong Kong Cyberport (Ancillary Development) Limited—were created under Financial Secretary Incorporated (FSI). The initiative was also criticized as unwarranted government interference in the property market.

Residential development masked as tech hub

Detractors contended that Cyberport operated primarily as a residential estate rather than a genuine technology center. Reports suggested that government land was injected into the venture at below-market rates. Analysis of planning and budget documents showed that residential use accounted for 75% of the developed area, while office space dedicated to tech firms comprised only around 17%. Shared facilities occupied a minimal section within an 18,000 sqm block that mainly contained housing units and apartments.

Low occupancy in government-owned office towers

The project became known as a "ghost town" due to the sparse tenancy within the government-owned segment. Although letters of intent were signed by fifteen corporations, including Hewlett-Packard, IBM, Microsoft, and Yahoo, only three companies initially occupied the space amid a downturn in the technology sector. The government refuted claims of preferential treatment, explaining that PCG served as an anchor tenant to attract reputable international technology firms. To accelerate economic advantages, the standard tendering process was bypassed. Subsequently, PCG spun off its residential property interests into a separate shell company to manage housing sales income and obtained first refusal rights to redevelop 60 PCCW telephone exchange locations. In 2004, activist David Webb criticized the government's opaque practices and called for audited financial statements for the affiliated entities.

Cyberport data breach

In September 2023, Cyberport experienced a data breach that exposed approximately 400GB of personal data. Initially, Cyberport refrained from disclosing full details to prevent causing "unnecessary concern." Cybersecurity specialists observed that the breach exploited security weaknesses dating back two to three years, underscoring insufficient protective measures. Former staff members reproached management for failing to issue an apology or take responsibility. Cyberport CEO Peter Yan minimized the incident’s severity and denied any human error involvement, while an ex-employee pointed out the inadequate recognition of cybersecurity flaws.

An editorial from the South China Morning Post criticized the delayed notification as reflecting poor management responsiveness and sensitivity, noting that the compromised data resided on a shared drive likely protected by lower security standards.

Development and community engagement

Following the government's announcement of the Cyberport Expansion project in 2019, Cyberport pledged to engage local residents and consult with the Southern District Council regarding the design of its waterfront park. However, by September 2023, Cyberport had declined invitations to attend meetings of the Economy, Development, and Planning Committee in both 2021 and 2023.

In June 2021, District Councilor Paul Zimmerman resorted to manually photographing expansion plans after Cyberport refused to provide digital versions. In 2023, Zimmerman pointed out eight unfulfilled commitments by Cyberport and criticized both Cyberport and the ITIB for neglecting community consultation on the HK$5.5 billion project. He also highlighted the lack of a dedicated website offering detailed information and condemned the exclusion of Pokfulam residents from participating in the design process as unfair.

Housing

Bel-Air is an upscale residential complex within Cyberport consisting of six development phases. Phases 1 and 2 are collectively referred to as Residence Bel-Air, while Phase 3 is known as Bel-Air on the Peak. Phases 1 and 2 each feature seven towers approximately 48 stories tall; floors above level 40 include combined apartments exceeding in size along with sky gardens boasting ocean vistas. Due to cultural superstitions, "Block 4" and all fourth floors have been omitted from numbering despite phase sequencing including four.

Bel-Air on the Peak’s floors typically contain two or three units: two larger flats labeled 'A' and 'C' alongside a smaller two-bedroom flat designated 'B.' The clubhouse here is more recently constructed with artistic elements and offers amenities such as an indoor swimming pool, fitness center, restaurant, snooker room, and children’s play area.

Residence Bel-Air provides two clubhouses—the Bay Wing and Peak Wing—equipped with facilities including a spa, indoor and outdoor pools, game rooms, gymnasium, children’s playroom, dining establishment, and private cinema. Each floor generally houses two three-bedroom apartments featuring kitchens and balconies. Additionally, single-family homes are situated adjacent to Residence Bel-Air.

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