Drawing upon Aihwa Ong's concept of 'neoliberalism as exception', this paper explores how the education authority in Shanghai capitalises on neoliberal knowledge, techniques and logics to address local challenges. Through the creation of 'new high-quality schools' that is accompanied by a new assessment system, the authority hopes to persuade parents to choose non-elite schools instead of prestigious schools that excel in academic performance. The neoliberal strategy of school choice is supported by the policy of school autonomy for educators to go beyond test scores to promote holistic development in students. The paper underlines the indigenisation of neoliberalism through policy dynamics where multiple educational stakeholders interact with and mutually influence one another. By highlighting 'neoliberalism with Chinese characteristics' in Shanghai, this study demonstrates how neoliberalism coexists with state forms, cultural norms and social practices in a particular locality.