In 1901, a group of eight Chinese businessmen and community leaders wrote to the Governor of Hong Kong asking him to open an English school for Chinese children residing in the Colony.
Through the concerted efforts of Sir Ho Kai, Dr. Tso SeenWan, Bishop Joseph Hoare and Archdeacon William Banister, St. Stephen's College was opened in 1903, with six boarders and one day pupil, as a Christian boys' school.
The objective of the Founders was to offer an opportunity for Chinese boys to acquire a highly regarded education similar to that provided by well-known English Public Schools of those times. It soon attracted overseas students, particularly Chinese students from Southeast Asia.
In 1928, the College moved from Pokfulam to Stanley for further expansion.
The College Preparatory School was opened in 1938.
In 1968, the College became co-educational and in 1970, it became a subsidized school.
Since 2008, the College has joined the Direct Subsidy Scheme.
