Francisca Ordega was on target for Shanghai as they condemned Elizabeth Addo and Tabitha Chawinga's Jiangsu Suning to their first defeat of the season following a 3-2 victory on Sunday.
Shanghai came into the game on the heels of a 1-1 draw at Changchun Dazhong a week ago and were hoping for a win in a bid to close the gap with the leaders Jiangsu.
On the other hand, Addo and Chawinga were cruising on a fine winning run of eight matches following a 1-0 win over Thembi Kgatlana and Linda Motlhalo's Beijing BG Phoenix FC last week.
At the Hongkou Football Stadium on Sunday, the visitors made a good start to the game as Tang Jiali fired them in front off an assist from Ghana's Addo's after just 23 minutes.
In the 36th minute, Ordega spearheaded the hosts' bid for a comeback into the contest as she scored for Shanghai to cancel Jiali's opener to ensure a 1-1 stalemate at half time.
After the restart, the lively encounter turned in favour of the home side after Miu Siwen gave them the lead in the 59th minute.
Siwen hit her brace to seal the win for the hosts even Jiangsu made a late fightback but they could only pull one back through Li Mengwen
Despite ending on the losing side, Addo has now provided seven assists, while Malawi's Chawinga remains the top scorer with seven goals for Jiangsu this season.
The win sees Shanghai retain the second spot with 17 points from eight matches and also reduced the gap to leaders Jiangsu to seven points, with a game in hand - against Guangdong on August 28.
For Jiangsu, it was their first defeat of the season, but they still remain at the top of the log with 24 points from nine matches before the break.