Yes. This is the largest buddhist monastery in China, and it is functioning. In fact this is the only monastery in the whole region that surivived cultural revolution. There are various theories and legends why it happened. One theory is that one important monk was relative of a party official. Another is that Mao's minister of culture was fond of it. There is also a legend about smart monk who put up a statue of Mao in front of the gates. Unfortunately the monastery after surviving the cultural revolution was mostly destroyed by the fire. However, there is a famous cliff in which around 300 ancient buddhas were carved, most of which were blown up by Chinese cultural "taliban", but one still remains as an original (the rest have been reconstructed recently), saved by another Mao statue related miracle. All in all Chinese did a very thorough job in destroying all their historical architectural heritage in that province. Almost nothing remains standing in those former jewels of china (Hangzhou and Souzhou).
it is quite far from Shanghai, about 2.5 hours to Hangzhou and another 30 minutes to monastery and another 40 to tea villages (and I think you need a special pass to get there). And then you have to go back :) So I suggest staying there overnight
unfortunately there is apparently only single company (goverment rrun of course :) that does Hangzhou tours for foreigners. Day tour wastes to much time - you will spend like 6-7 hours in the bus
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I though Hanzhou was closer! They have lots of day tours -- did you take one of the organized ones, or go by yourself?
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