Welcoming Shanghai to McDonald Jones Stadium in front of 1614 fans on Tuesday night, the Jets produced the best performance of their Asian campaign to date as they stormed towards the finish line with goals from Patrick Wood and Xavier Bertoncello.
But needing to come back from a three-goal deficit, Mark Milligan's side were facing an uphill climb, and their hopes were dashed in the 86th minute when Xinxiang Li netted to secure victory for the Chinese Super League powers, coached by former Socceroo Kevin Muscat.
The visitors had taken the lead thanks to quickfire strikes in the 23rd and 26th minutes, the first from Brazilian striker Leonardo and the second an unfortunate own-goal from Thomas Aquilina, before a wonderful effort from Prince Ampem in the 51st minute added to the cushion.
It means that, despite their bravery, the reigning A-League Men premiers' hangover to start 2026-27 continues unabated: none from four in the ACLE, knocked out of the Australia Cup in the Round of 32 by NPL Victoria side Preston Lions, and winless across their opening three ALM fixtures.
They'll next have the chance to salute on Saturday evening when they travel to face Perth Glory in domestic action.
Coming close on multiple first-half occasions, Joe Lolley tried to get Mark Milligan's side off to a good start, but Leonardo's header and Aquilina's misplaced clearance of an Oscar Melendo attempt gave Shanghai the ultimate response.
Ampem's strike could have seen the Jets fold, yet they continued to strive amid driving rain and gave themselves a sniff through Wood and Bertoncello.
But Li dashed their hopes near the death.
