He saw the hard time with his own eyes and held that only through training more young disciples could he strengthen the monastery and inherit the Buddhist tradition. Thus he ignored opposition and difficulty and decided to found Shanghai Buddhist College in the monastery, and invited Master Zhen Hua from the Zhulin Monastery in Zhenjiang to be the dean of the college, at the same time to be the abbot of the monastery.

It was a significant event in Shanghai Buddhist circle at that time to found the Shanghai Buddhist College. Although it was hard time, Master Zhen Hua tried his best to invite famous masters to give lectures, planned and offered different courses. At that same time he set up a library and founded the Hong Yi Society to educate the young Buddhist disciples. Several years later, a new well-educated Buddhist generation began to show their talents, and some of them are famous masters nowadays in the Buddhist circle both at home and abroad.

In the winter of 1945, Master Zhen Hua resigned from abbot, and Master Zhi Fang succeeded the position. In the spring of 1946, Master Fu Shan, a follower of Great Master Tai Xu to the monastery as the superintendent and director of teaching affairs office of the Shanghai Buddhist College.

In 1946, Great Master Tai Xu, then executive member of Collation Committee of China Buddhist Society lived in the Jade Buddha Monastery and based his working place in the monastery for collation of Chinese Buddhist development. He founded the Juequn Society, published Juequn Weekly to disseminate his views on reformation of Buddhism.

In January 1947, Master Zhi Fang retired from the position of the abbot, Master Wei Yi succeeded. During February and March of that year, Master Fu Shan, Master Zhen Hua and Master Tai Xu passed away in the Jade Buddha Monastery one after another. In addition, the dangerous situation in China made the monastery could barely support itself.