Author's Note
Due to business reasons, I have recently had frequent contact with Hong Kong and personally visited two major Web3 hubs supported by government policies: Cyberport and Science Park. The geographical locations, support policies, and preferences for applying companies are different between the two parks, so this article provides a detailed summary based on my personal understanding of the situation. However, there may still be omissions, so it is best for everyone to personally visit and investigate.
In addition, I would like to add that I don't like to include images in my articles. The main reason is that the initial publication of the article is on a public platform, and if images are uploaded, it will prevent Mirror and xlog from accessing the images (the public platform restricts accessing images from external links), which requires re-editing. Therefore, unless it is an important explanatory image, I will not include images.
Furthermore, due to the large amount of information in this article, the content may appear somewhat messy, and I hope for your understanding.
Main Text
Currently, I know of two parks that have Web3 support policies, namely Cyberport and Science Park. Cyberport is located in the westernmost part of Hong Kong, quite far from mainland China. Science Park is located in the northern part of Hong Kong, next to the Chinese University of Hong Kong, and is much closer to mainland China. If you drive from Shenzhen to Hong Kong, Science Park will be closer, while Cyberport is very far. However, if you arrive by high-speed rail at West Kowloon, Cyberport is actually closer, about 9 kilometers, while Science Park is further away, about 18 kilometers.
The starting point in the lower left corner is Cyberport, and the ending point in the lower right corner is Science Park. There is a distance of 30 kilometers between the two, and the red arrow in the middle represents West Kowloon Station. It is worth noting that neither Science Park nor Cyberport currently have subway access, so you will generally need to transfer from the subway to a minibus, or take a minibus for the entire journey.
//Web3 Support and Occupancy at Cyberport
First, let me explain the relevant situation at Cyberport in detail.
Currently, more than 1,900 companies have completed their occupancy at Cyberport, including well-known unicorn companies such as Animoca Brands, HashKey Group, and ZA Bank. Cyberport has a very large space and operates similar to shared offices like WeWork, but there are not many remaining workstations, and most of the positions have already been rented out, but the workstations are not occupied.
//Web3 Special Support Policies#
What most people are concerned about is the support policies. Let's start with a direct image.
As shown in the image, different special subsidies can be obtained based on the project's stage. The image is a broad conceptual diagram, and I will provide detailed explanations of the details.
First, let's talk about the HKD 100,000 seed funding in the second circle on the left. There are no specific requirements for the project stage, even if it is just an idea, you can apply. There are approximately 1-2 application opportunities per year, and even if you apply, it is not guaranteed that you will receive the funding. You need to have a complete project plan, market plan, etc., similar to a project interview, and stand out among all the projects that have applied.
The funds in the third, fourth, and fifth circles are more like special subsidies. For example, if your project has reached a certain stage of development and you need to rapidly expand the market, you can apply for these subsidies. Similarly, there will be dedicated personnel to evaluate and interview your project.
The total support funding from these stages adds up to HKD 1.1 million. With this funding, you do not need to give up equity.
The HKD 400 million government funding on the far right is a support fund for the entire Web3 industry in Hong Kong. Only unicorn companies selected in Cyberport can receive this funding. The funding amount is HKD 20 million, and it requires a minimum 10% stake, but it is important to note that this stake is the government's stake.
//Web3 Talent Subsidy Policies
This mainly applies to local talent in Hong Kong. If your project employs local talent in Hong Kong, you will receive talent subsidies from the government. For example, for the employment of Hong Kong PhD holders, you can receive a subsidy of HKD 32,000 per month; for Hong Kong Master's degree holders, the subsidy is HKD 20,000 per month, and for Hong Kong Bachelor's degree holders, the subsidy is HKD 18,000 per month. These subsidies are given to the companies to reduce their labor costs in Hong Kong.
In addition, Hong Kong has also opened two pathways for talent introduction, namely the Talent Admission Scheme and the Quality Migrant Admission Scheme. The Quality Migrant Admission Scheme is self-explanatory, as long as you meet the requirements and are outstanding enough, you can apply through this scheme. However, if your academic qualifications and experience are not outstanding, you can use the Web3 company to apply through the Talent Admission Scheme.
The Talent Admission Scheme means that if a specific company (such as a Web3 company in Cyberport) is willing to provide sponsorship, talent can be introduced in the form of a work visa. After working for seven years on a work visa, you can obtain permanent residency in Hong Kong. However, the sponsoring company must meet the corresponding annual tax threshold, which means that your Web3 project must be online, compliant, and profitable, and pay taxes in order to apply for talent introduction. Shell companies or companies trying to evade taxes through cryptocurrency will not meet the requirements.
On the other hand, individuals introduced through the Quality Migrant Admission Scheme can change companies freely within seven years. However, individuals introduced through the Talent Admission Scheme cannot change companies within seven years, which means they cannot switch jobs or change company entities.
//Occupancy Costs and Requirements at Cyberport#
- Occupancy Costs
The occupancy costs at Cyberport are very low, even lower than in Beijing, Shanghai, Guangzhou, and Shenzhen. First, to apply for occupancy, you only need to have a complete Hong Kong entity company, a Hong Kong corporate bank account, and a project plan. There are no specific requirements for the project stage, even if it is just an idea, you can apply for occupancy.
There are three types of occupancy: hot desks, fixed desks, and offices. The prices for hot desks and fixed desks are both HKD 1,980 per month, and the main difference is that hot desks cannot provide address proof, which means you cannot register a Hong Kong company under the name of Cyberport, so it is only suitable for projects that already have a company elsewhere in Hong Kong. Fixed desks can be used to register a Hong Kong company at the location of Cyberport, without the need to find a registration point elsewhere.
The price of offices varies depending on the size, and there is no uniform price, but it is generally around HKD 2,000 per workstation. However, all the offices at Cyberport are currently fully occupied.
For price comparison, the lowest price for a workstation at WeWork in China is CNY 1,800, and the price for an office workstation ranges from CNY 2,500 to CNY 3,500. Some prime locations at WeWork may be even more expensive.
- Application Rules
The application rules at Cyberport are relatively simple. I will list them in an unordered list format.
- At least one workstation needs to be leased to apply.
- Rent is paid monthly without a deposit.
- Project staff do not need to work in the office, but there are attendance requirements.
- Workstations have attendance rate assessments, with a minimum requirement of 30% attendance, which means clocking in is sufficient.
- Complete project plans and application forms are required, and there will be dedicated personnel to follow up and review, similar to an interview.
//Additional Information about Cyberport
The core information has already been covered. Here are some additional points that I personally consider important.
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Most of the companies that have occupied Cyberport do not have employees working in the office, and both workstations and offices are empty but have already been rented out. However, Web3 companies are more distributed or have offices in mainland China.
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Cyberport has attendance rate requirements, with a threshold of at least 30%. However, it is not clear whether this 30% refers to 30% per week or 30% per year. Attendance is recorded based on access card records for entry and exit. Therefore, you need to arrange personnel to clock in in Hong Kong. However, there is no requirement to work in the office, so you can clock in and leave.
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Commuting to Cyberport is not convenient, as there is currently no subway access. If you depart from West Kowloon, public transportation takes about 50 minutes. Taking a taxi takes about 30 minutes. The taxi fare ranges from HKD 180 to HKD 250, depending on whether you pass through a tunnel and whether it is during peak hours.
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Cyberport is located by the seaside, surrounded by sea-view properties, which has led to extremely high rental prices in the area. The rental price for a single room ranges from HKD 10,000 to HKD 20,000 per month, and renting an entire apartment in the area costs between HKD 100,000 and HKD 200,000. The price difference is due to differences in property developments, with the cheapest residential area near Cyberport costing around HKD 17 million, while the most expensive one costs HKD 268 million. Here are some pictures for your reference.
//Web3 Support Policies at Science Park
Due to the distance and time constraints, I have not conducted an on-site investigation at Science Park. However, the information mentioned here is obtained directly from officials at InvestHK. I will provide detailed information on the situation after conducting an on-site investigation in the future.
First, let me set the tone for Science Park. Science Park is more inclined towards medium to large-scale, technology-focused, and research and development projects. It has higher requirements for the project's development stage, and its support policies are not limited to Web3 but also include other high-tech areas such as artificial intelligence, metaverse, VR/AR, etc. Most of the existing projects are not as financialized and are more focused on public chains, protocols, and projects with actual products. There are very few projects focused on NFTs, concepts, or tokenization at Science Park, but it doesn't mean there are none.
//Web3 Special Support Policies#
First, let's categorize the support into three types based on the level of support:
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idear Program: It provides HKD 100,000 incentive, but there are specific requirements for the project's progress. The project needs to be close to launch, and a local investor's recommendation is required. The idear Program is held every year.
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Incubator Program: Similar to Cyberport's HKD 1.1 million incentive program, Science Park provides HKD 1.39 million incentive through the incubator program.
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Accelerator Program: Similar to Cyberport's government-funded program, but the maximum funding is only HKD 4.8 million, and it also requires the government to take a stake. However, the stake percentage will be lower than at Cyberport.
//Web3 Talent Subsidy Policies#
These are basically the same as Cyberport, so I won't repeat them. The difference is that Science Park also has a research and development talent pool for referrals, and this talent pool consists of doctoral-level talents who can also enjoy the HKD 32,000 per month subsidy mentioned earlier. The talents receiving the subsidy must work locally in Hong Kong.
//Occupancy Costs and Requirements at Science Park
The occupancy method at Science Park is different from Cyberport. Science Park does not offer workstations for occupancy, but instead rents out office space based on area. The known rental price is approximately HKD 30-32 per square foot, and 1 square meter is approximately equal to 9 square feet.
Now, here comes the key point, which is also the biggest difference from Cyberport.
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Science Park requires more than half of the R&D positions in the occupying company to work in Science Park, and the project application review will emphasize the requirement for technology-focused and research and development projects. When determining whether it is an R&D position, employee resumes need to be submitted and reviewed by dedicated personnel.
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When applying to Science Park, proof of the company's technological focus is required.
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When applying to Science Park, a complete technological research and development plan, incubation plan, and operation plan are required.
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When applying to Science Park, in addition to submitting documents, there will also be interviews for the company and the project.
//Additional Comparison between Cyberport and Science Park#
In summary, Cyberport is more inclined towards small and micro-enterprise projects and does not have many requirements regarding the nature of the projects. Marketing-focused and concept-focused projects are acceptable, and currently, there seem to be no restrictions as long as they are compliant and legal. On the other hand, Science Park is more inclined towards large-scale projects, focusing on research and development and technology, such as developing public chains or metaverses. The review process for projects is also more rigorous.
At the same time, Cyberport has very lenient requirements for personnel, as long as the attendance rate is met, there is no requirement to work in the office. Science Park requires at least half of the R&D personnel to work in the office. This indirectly increases the company's labor costs.
In addition, I would like to add that I have seen people in the industry organizing trips to Hong Kong for a fee, charging tens of thousands of dollars. However, in reality, it is not necessary to pay for a visit to Science Park or Cyberport, and even visiting InvestHK does not require payment. You just need to contact the staff and make an appointment in advance.
Finally, I welcome everyone to exchange ideas about Web3 in Hong Kong, and I will frequently visit both Hong Kong and Shenzhen in the future.
Author: Liu Ye Jing Hong
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