Melbourne Victory suffered its first loss of the AFC Champions League campaign, going down 4-1 to Shanghai SIPG.
A second-half brace from Oscar, a Hulk penalty and a Wu Lei header saw Shanghai to its win in Group F.
Besart Berisha struck from the spot in the second half for Victory, which had its moments at difference times throughout the encounter.
Victory looked bright early in cold and wet conditions as its attacking quartet of Berisha, James Troisi, Leroy George and Kosta Barbarouses combined well.
The visitor created a good chance in the ninth minute, Leigh Broxham firing over from an angle after getting on the end of a Terry Antonis pass.
But Shanghai threatened five minutes later as Elkeson volleyed wide after a Hulk cross from the right.
In an entertaining start, Victory went close again in the 16th minute as George – who scored twice and had an assist against Ulsan Hyundai – twisted and turned on the right side of the area before firing wide.
Victory goalkeeper Lawrence Thomas was forced into two saves soon after, while an Antonis strike from just inside the area was briefly spilled by Yan Junling before the Shanghai shot-stopper recovered.
The host opened the scoring in the 27th minute, Hulk converting from the penalty spot after a Jason Geria handball in the area.
Shanghai doubled its lead four minutes prior to the break, Wu diving at a Wang Shenchao cross from the right and heading past Thomas.
Berisha found the back of the net from a Geria cross before half-time, but the striker was offside, while George fired over after being put in behind by Barbarouses.
Oscar made it 3-0 early in the second half, his 25-yard strike taking a deflection before finding the bottom corner.
A fine team move led to a Victory chance in the 56th minute, but Troisi side-footed wide after Broxham was released down the left.
Oscar chipped a chance wide after a brilliant Hulk pass before Victory pulled a goal back, Berisha converting from the penalty spot following a handball in the area.
But Oscar sealed Shanghai's win with a fine effort, curling a strike into the far corner to make it 4-1.
Player in focus
What they said – Carl Valeri
on the match…
"I think we started off well. We conceded in key moments. I think they scored goals in key moments of the game, which really cost us. Ultimately, their quality shone through, but I think there are a lot of positives to take out of this performance."
on the weather…
"I think it's great weather for football, nice and cool, obviously cooler than Australia, but it's good weather. Their quality shone through and there are lessons to be learned but a lot of good things to come out of this."
on where the team stands…
"There are many more games to go. I think with the quality of our team and the experience we have, I think we can do well. We've just got to focus on ourselves and look forward to the next game."
AFC Champions League 2018 Match Day 2
Shanghai SIPG 4 (Hulk 27' pen, Wu Lei 41', Oscar 47'/77')
Melbourne Victory 1 (Besart Berisha 69' pen)
Shanghai SIPG: Yan (gk), Wang, He, Shi, Yu, Oscar, Cai, Ahmedov (Lin 89'), Hulk (c), Wu (Hu 87'), Elkeson (Lu 85')
Melbourne Victory: Thomas (gk), Geria (Deng 64'), Williams, Donachie, Broxham, Valeri (c), Antonis, Troisi, Barbarouses (Theoharous 84'), Berisha, George (Ingham 84')
Yellow cards: Yu 39', Antonis 53', Valeri 71'
Red cards: Nil
Venue: Shanghai Stadium
Victory returns to Hyundai A-League action on Saturday night, hosting Adelaide United at AAMI Park. Tickets available here.