According to the Malay Annals, Tun Parapati Puti was sent by Mansur Shah, the Sultan of Malacca in the middle of the 15th century (1459-88), as an ambassador to the Court of Peking. He came back bringing with him Princess Hang Li Po, the Ming Emperor’s daughter, who was given as a wife to the Sultan. She was accompanied by 500 handmaids and all were converted to Islam and given as a residence “the hill without the town”. Hence its name of Bukit China. The Chinese dug a well at the foot of the hill which is the actual Perigi Raja or Sultan’s Well.

Some of the oldest Chinese relics in Malaysia are to be found on the hill, which, together with Bukit Gedung and Bukit Tempurung, forms one of the largest Chinese burial grounds outside China. This burial ground covers an area of more than 106 acres which was donated by Li Kup, alias Li Wei King, the founder of the Cheng Hoon TengTemple, to the Malacca Chinese in the middle of the 17th century. The ground contained the graves of some of the early Chinese notables in Malacca such as Lip Kap who died in 1688, Tay Kup who died in 1677 and Chan Kup and his wife. These graves are still intact and well preserved.

Since ancient times, the Chinese have always buried their loved ones on hillsides as they believed that they would be at peace surrounded by nature and that the hills would protect them from the evil winds that blow. Also, the dead ancestors would always watch over their descendants.

Buried on the hill, is the first Kapitan China, Lee Kup, who died in 1688. A kapitan (captain) is the position created by the China East India Company for a prominent local who acts as an intermediary between them and the ethnic people. He was succeeded by Kapitan Li, who is buried on the other side of the hill. Kapitan Li generated a local myth in that when he passed away, his family had sought the advice of a fortune-teller on finding a suitable location for the grave and on the construction itself. The fortune-teller was said to have told his family that if the grave was three feet deep, then Li's son would be very prosperous. Should it be any deeper than that however then his son-in-law would be the lucky beneficiary. Li was finally buried three and a half feet in the ground and it soon came to pass that his son-in-law, Chan Lak Koa, became extremely successful.

More:

The Sultanate of Malacca (1402 - 1511) was a Malay sultanate founded by Parameswara, a Srivijayan prince who escaped the Majapahit capture of Palembang. In 1402, he founded a new capital, Malacca (Melaka in Malay), at the chokepoint of the strait between Sumatra and the Malay Peninsula, the narrow passage through which passed all sea-going traffic between the South China Sea and the East Indies and the West. In 1414, he converted to Islam and became the Sultan of Malacca.

The Sultanate thrived as an entrepot and became the most important port in Southeast Asia during the 15th and the early 16th century. Furthermore, Malacca was a major player in spice trade, as a gateway between the Spice Islands and high-paying Eurasian markets. The Portuguese writer Duart Barbarosa once wrote "He who is lord of Malacca has his hand on the throat of Venice".

One of the factors that contributed to the rise of Malacca was the monsoon winds that enabled Arab and Indian traders from the west to travel to China in the east and vice versa.

At the height of its power, the Sultanate encompassed most of modern day Peninsula Malaysia, the site of modern day Singapore and a great portion of eartern Sumatra. It was also the center of Islam in the eastern sphere.

The Sultanate most important regional rivals were Siam in the north and the declining Majapahit Empire in the south. Majapahit was not able to control or effectively compete with Malacca within the archipelago, and came to an end during the later 15th century. Siam on the other hand attacked Malacca three times, but all attacks were repelled.

At the same time, Malacca had a good relationship with China. One of the Malaccan Sultans even married a Chinese princess named Hang Li Po. This friendly relationship with China helped deter Siam from invading.

It was in 1509, during the reign of the last Sultan of Malacca, Sultan Mahmud Shah that the Portuguese - the first European power to reach Southeast Asia - reached Malaccan shore, led by Admiral Lopez de Sequira. Trouble however ensued immediately after the general feeling of rivalry between Islam and Christianity was invoked by a few groups, in particular the Indian merchants in the Sultan court.

Soon, the Portuguese fleet was attacked by the Malay and was forced to flee.

In 1511, a larger Portuguese fleet from Cochin, India led by Viceroy Alfonso d'Albuquerque attacked Malacca. On August 24, Malacca fell after 40 days and the Sultanate was effectively divided into two Malay states - Perak in the north and Johore in the south - and thus ended the Sultanate of Malacca.

In our scenario, Malacca would not fall to the Portugese. China has colonized Malacca and is able to thwart all attempted invasions.

Another source:

The Malaysian Chinese Experience (excerpt)

According to Sejarah Melayu or the Malay Annals, the Chinese first settled in Malacca when an entourage of 500 Chinese men and women accompanied Princess Hang Li Po to marry the Sultan of Malacca (15C). They were given Bukit China (Chinese Hill) for their settlement and burial grounds. The burial grounds are still there but no longer the settlement, as the Chinese and their descendants moved out to other parts of the city.

"The early Chinese settlers had no problems with the Malays, I think, because of three reasons, maybe more; many of them saw themselves only as sojourners (huagiao) who were in Malaya temporarily, always planning to return to China when they have made their fortune or saved enough money They wanted to spend their remaining years in their native land. Those who chose to remain assimilated somewhat, they adapted and adjusted.

"They adopted and used the Malay language, creating their own patois, their women dressed like Malays, but in reality the racial differences were (and are) deep-rooted, in the main because of religion. The Malays were and are exclusively Muslim whilst the Chinese are pragmatic, many remained ancestral worshippers or Buddhists. But many also became Christians and a few, Muslims.

And Another:

When Admiral Yin Ching, China's Ming Dynasty's envoy arrived in Malacca in 1403, Malacca had become a prosperous port with a population of 2,000 people. China's Emperor Yung Lo’s (Yongle Emperor) envoy, Admiral Zheng He later visited Malacca in 1408 and 1411, with gifts for the ruler. Malacca pledge allegiance to China and seek protection from Siam. Parameswara (1400 - 14) passed away in 1414 and the throne was taken over by his son, Megat Iskandar Shah who also sent envoys to China in 1414, 1415, 1416 and 1418.

Megat Iskandar Shah ruled from 1414 to 1424, Sri Maharaja ruled from 1424 to 1444 and Muzaffar Shah ruled 1445 to 1459.

Source links:
http://www.mir.com.my/lb/un/99html/200499b.htm
http://planet.time.net.my/SunwayCity/frank88/history.html

And another source:

Located on the west coast of Peninsula Malaysia, Melaka is the second smallest state in the country. However, it has vast historical significance.

Since the time Parameswara, a Prince from Palembang in Sumatra, founded Melaka in 1402, the state's fame spread from East to West, transforming it from a small fishing village to a great port and the centre of the spice trade.

In those days, the Straits of Melaka was one of the world's busiest trade routes with traders from as far as India, Arabia, China and even Europe converging here. In fact, word of Melaka's fame and fortune and its strategic trade location spread to the west which eventually led to its occupation by the Portuguese in 1511, followed by the Dutch, the British and finally, the Japanese.