Cheong Fatt Tze was worried that new generations of Chinese might eventually forget their mother tongue and their own culture.
It is also the only Chinese school outside of China that had been accredited by the Qing dynasty, which presented it to Mr. Cheong Fatt Tze.
Cheong Fatt Tze led a team of Qing dynasty officers in their mission to construct the Chung Hwa Confucian School.
In its early years, Chung Hwa Confucian School was situated in the Ping Zheng Association building (now known as the Penang Chinese Town Hall) that was located in Jalan Masjid Kaptian Keling (formerly Pitt Street).
In 1908, the school moved to Maxwell Road (currently the site of Komtar Tower) in George Town.
Within a few weeks, the funds were collected, and the school's board of directors bought a piece of land in Green Lane.
The primary school remained at Maxwell Road (now Jalan Dr. Lim Chwee Leong).
By this time SMJK Chung Hwa Confucian had become a modern, advanced and fully equipped school.
Therefore, both Chung Hwa Confucian Primary Schools have to be moved to Jalan Ibbetson, which is beside the Penang State Mosque.
Currently, Chung Hwa Confucian High School has 2,000 students and 140 teaching staff.
A grand dinner and exhibition were held in the main hall of SMJK Chung Hwa Confucian.
SMJK Chung Hwa Confucian is situated inside the residential area of Jalan Tembaga in Green Lane.
It is connected to Jalan Masjid Negeri and the Penang Bridge and the township of Batu Lanchang are situated nearby.