Learning to read Chinese has been the main focus of Chinese heritage language education. The frequency of exposure to orthography–phonology and orthography–semantics correspondences and radical awareness play a significant role in character learning. However, limited exposure to characters in Chinese textbooks and the lack of explicit instruction on phonetic radicals have been proposed as limitations of conventional instruction methods used with Chinese heritage language learners. The current study assessed the efficacy of providing frequent character exposure in group reading activities for Chinese heritage children in their early learning to read Mandarin Chinese through a teaching method called Progressive Character Reading. The effectiveness of the teaching method on Chinese character acquisition and Chinese reading comprehension was examined through a quasi-experimental framework that compared a group of children undergoing the new teaching method (experimental group, n = 20) with a group of learners experiencing the traditional textbook-based instruction (control group, n = 20). Significant differences in gains between these two groups were found in measures of Chinese character reading, character–picture matching and Chinese sentence comprehension. These results suggest that group reading activities with frequent character exposure can increase learning for Chinese heritage language learners over that associated with conventional textbook-based instruction.