In 1971, Dr. Henry H.L. Hu and Dr. Chung Chi Yung founded Shue Yan on Sing Woo Road, Happy Valley, in response to the acute shortage of tertiary places for local secondary school leavers aspiring for a university education. In 1976, Shue Yan College was registered under the Post-secondary Colleges Ordinance (Cap. 320). On 19 December 2006, Shue Yan College became the first private university in Hong Kong after it was renamed Hong Kong Shue Yan University (HKSYU) by order of the Chief Executive in Council.

HKSYU has cooperated with STU Business School via student exchange program.