The scholarship was established by the Hong Kong–based worldwide shipping tycoon Sir Yue-Kong Pao who was also a Zhejiang native.
[1] Pao's family also have continuously contributed to the scholarship.
[citation needed] The scholarship was first set in January 1983, based on the first donation of US$1 million by Pao.
October 1985, Pao donated another million USD to enlarge the scholarship.
[2] The purpose of the scholarship is to support qualified Zhejiang University students to pursue their studies outside mainland China.