Hong Kong Pegasus FC was founded as TSW Pegasus FC by various people from the Yuen Long District Council in 2008, with the help of South China chairman Steven Lo and his entertainment company bma, as well as his spouse Canny Leung, who was one of the members of the board.

Moreover, players including Cheng Siu Wai and Deng Jinghuang joined TSW Pegasus from South China soon after the club was founded.

[1] Despite TSW Pegasus suffering a 0–3 defeat to South China in the first match between the clubs, they went on to win three times over South China in the Senior Shield, the League Cup and the Hong Kong FA Cup in the same season.

They nearly won the away league match at Hong Kong Stadium, but Dhiego Martins' controversial goal brought South China a point.

Top scorers in First Division derbies These are the major football honours of South China and TSW Pegasus.