The establishment of the college dates back to 1901. A group of prominent Chinese businessmen approached the Church Missionary Society to administer a school for their sons. The inspiration came from Dr. Pibi Nay Nay Yan. The aim was to maintain the standard of teaching and level of equipment which is comparable to the best Public Schools in England. In 1903, St Stephen's College was officially established on Bonham Road in Western District. In the 1920s, the government granted the school 40 acres (150,000 m2) on the Stanley Peninsula in recognition of "outstanding contributions to education". The foundation stone was laid in April 1928 by the Governor of Hong Kong, Sir Cecil Clementi, and in May 1929, the college was fully functional in its new buildings, many of which are still in use today.