The idea of founding the school originated from the late governor, Sir Edward Youde.
He proposed the setting up of a secondary school in Hong Kong which would not only emphasize academic performance but would also provide an opportunity to develop students' potentials in sports and visual arts. In November 1985, the Chief Secretary came to an agreement with the Royal Hong Kong Jockey Club (RHKJC) that such a school would be built in Shatin. A total funding of eighty-four million Hong Kong dollars was established by the RHKJC and the Government. The Education Department invited professionals and educators to form the School Management Board. The school commenced its operation in September 1989 and is now in full swing.