The Tibetan Buddhist monk is one of three Tibetan suspects apprehended after Dr Rinpoche, 73, his nephew and driver were killed in a residential area of Chengdu.
Yesterday prayers were being said for Dr Rinpoche at the Kagyu Samye Ling Tibetan Buddhist monastery in Eskdalemuir, Dumfries and Galloway, Europe's biggest and oldest Tibetan religious centre.
Dr Rinpoche's younger brother Yeshe Losal Rinpoche announced the launch of a memorial fund in his honour "dedicated to his memory" and to continue his humanitarian work.
"The tragic news of Choje Akong Tulku Rinpoche's sudden death has deeply affected everyone who knew him. Rinpoche was highly respected and loved by many thousands of people all over the world and we intend to do everything to honour the passing of such a great being."
Buddhist nun and course leader at the Eskdalemuir monastery Gelongma Zangmo, who was close to Dr Rinpoche said: "Of course we know who was responsible, there is no question about it. We are all devastated here."
The monastery was set up 1967 and about 60 people, including monks and volunteers, are believed to live there.
Ms Zangmo added: "He was a remarkable man. He was brother, mother, uncle, cousin, adviser and doctor."
The Karma Leksheyling Buddhist educational institute in Nepal described the death as "an immense loss for the world".
Representatives of the institute said: "We are deeply saddened to learn about the tragic passing of Most Excellent Akong Rinpoche and wish to forward our deepest condolence to everyone who is close or associated with him, directly or indirectly.
"He is the Great Master who not only worked for the Lineage but also built many schools, hospitals, homes for the elderly and organised soup kitchens for needy people in Asia and Africa."
Tributes poured in to the Scottish monastery's Facebook page. Ann Pryce said: "Shocking news that men of peace die in such a violent way. In my prayers."
And Sydney Leijenhorst added: "Sad news about one of the forefathers of Tibetan Buddhism in the West."