The most brilliant synthesis of the Way of the Celestial Masters with the indigenous traditions of the Southeast occurred in the 4th century ce in a family closely related to Ge Hong. Xu Mi, an official at the imperial court, and his youngest son, Xu Hui, were the principal beneficiaries of an extensive new Taoist revelation. A visionary in the Xus’ service, Yang Xi, was honored with the visits of a group of perfected Immortals (zhenren) from the heaven of Shangqing (“Supreme Purity”), an improvement on the Taiqing heaven and the ordinary Immortals (xian) that peopled it. In the course of his visions, which lasted from 364 to 370 ce, Yang received a whole new scriptural and hagiographic literature, in addition to much practical information from the “perfected” (zhen) on how it was to be understood and employed. Like the Ge family, the Xus belonged to the old aristocracy of Wu, who had been displaced from prominence by the arrival of the great families of the North, to whose Taoist beliefs they had been converted. The perfected assured them that the present unjust order was soon to end and that the rule of men on earth was to be replaced by a universal Taoist imperium. The present (i.e., the 4th century) was a time of trials, given over to the reign of the demonic Six Heavens, and marked by war, disease, and the worship of false gods. The sole mission of the demonic forces, however, was to cleanse the earth of evildoers, a task that would be completed by an overwhelming cataclysm of fire and flood. At that time the Good would take refuge deep in the earth, in the luminous caverns of the perfected beneath such sacred mountains as Maoshan (in Jiangsu province), the immediate focus of spiritual interest for the Xus. There they would complete the study of immortality already begun in their lifetimes, so as to be ready for the descent from heaven of the new universal ruler, Lord Li Hong, the “sage who is to come” (housheng). This was prophesied for the year 392. Yang and the Xus would get high office in the heaven of Shangqing and rule over a newly constituted earth peopled by the elect (zhongmin).

Yang Xi’s prodigious genius gave great consistency and consummate literary form to his comprehensive synthesis of many spiritual traditions. Popular messianism was adapted to provide an encompassing framework and temporal cogency. Yang and his patrons, however, were also thoroughly familiar with Buddhist thought. In addition to integrating Buddhist concepts into their Taoist system, the perfected also dictated a “Taoicized” version of large portions of an early Buddhist compilation, the Sutra in Forty-two Sections (Sishierzhangjing). Buddhist notions of predestination and reincarnation were subtly blended with native Chinese beliefs in hereditary character traits and the clan as a single unit involving mutual responsibility on the part of all its members, living and dead. Furthermore, building upon the Way of the Celestial Masters, the Maoshan revelations envisaged some reform of the practices of the parent sect. Its sexual rites in particular were stigmatized as inferior practices, more conducive to perdition than to salvation. In place of this, a spiritualized union with a celestial partner was apparently realized by Yang Xi and promised to his patrons. Other rituals of the Celestial Masters were allowed to continue in use among the Maoshan adepts but were relegated to a subordinate position. Thus, the movement did not reject but rather incorporated and transcended the older tradition.

Though the perfected inveighed against the popular cults, even elements of these were absorbed and transformed. There is some evidence that, before Yang’s inspired writings, Lord Mao himself, the august perfected Immortal who gave his name to the mountain, was no more than a local minor god worshipped by an exorcistic priestess in the shadow of Maoshan. Among the more learned traditions, alchemy received particular attention, being adopted for the first time into the context of organized religious Taoism. The perfected revealed the highly elaborate formulas of several of the elixirs that served them as food and drink. For all their extravagance, they were intended as real chemical preparations and described as being deadly poisonous to mortals. By preparing and ingesting one of them, the younger Xu probably willingly ended his earthly existence in order to take up the post that had been offered him in the unseen world and to make ready for the coming of the new era.