The Independent reported this super-expensive brew, which tastes peachy and woody, is made from a rare type of tea bush grown only at high altitudes and simmered for up to eight hours.
Da Hong Pao is often served with meals at the Royal China Club that cost up to £3,000.
Manager Paul Keung has clarified that the price tag actually covers the cost of the whole package for making the tea, which could be divided into approximately ten pots. So each serving would come to around £20.
Having said that, Da Hong Pao is still the most precious kind of Chinese teas.
It is said the leaves, which retail for more than £650,000 a kilo, come from just three fabled bushes from Fujian province in south-east China. They are rumoured to have produced tea which cured the illness of the mother of a Ming dynasty emperor.
Keung said: “Tea is very important for the Chinese. Our tea is sourced from regions in China which can be compared to vineyards for wine.
“The reason why our tea is very expensive is because it has been fermented for more than 50 years.”
Just like the British drink English breakfast tea, Da Hong Pao can be served casually at home.
“Once the tea has been baked and dried, it comes in the shape of a pancake, so you can break it up pieces by pieces and then brew it,” added Keung.