Located in Tianjin, a coastal city by the Bohai Sea, the Nankai School, which is now known as the Nankai University, was a privately-run new school set up in 1914. Zhang Boling, head of the school, was a person who had received western education. He incorporated dramatic performances into the school's educational program. As early as 1909, he wrote and personally performed in a play titled Unpractical Learning.

In 1914, the Nankai New Drama Troupe was established. Zhou Enlai, who was considered by Zhang Boling as "the best student in Nankai School", was in charge of stage settings in the troupe. He participated actively in performances while at the same time exploring energetically the theories of new drama. Zhou's later revolutionary activities had been closely related to drama. The Nankai New Drama Troupe suddenly rose as a new force at a time when civilized drama went astray.

In 1916, Zhang Boling's younger brother Zhang Pengchun (1892- 1957) completed his studies in the US and returned home. He instructed the Nankai New Drama Troupe using all the techniques he had learned in the US about modern western dramatic performance. Plays produced by the troupe, such as A Penny, A Momentary Slip and New Village, adopted some western realistic methods in reflecting truthfully some social issues. The troupe persisted in rehearsal according to the script and opposed random and meretricious performances. Like a fresh wind blown into the then theater, the troupe's performances were well received by the audience.

The dramatic performance by students of the Nankai School heralded an epoch-making transformation. At the same time, the school troupe also fostered a fair number of fine dramatists, who became the precursors of modern Chinese drama, such as Zhang Pengchun and Cao Yu, etc.