Transforming examination-oriented education into quality education is the common goal of educational development in Hong Kong and Shanghai. By examining three aspects of quality education: fitness for purpose, the role of educational practitioners, and the issues of equality and equity in education, the achievements of the two cities in developing quality education are depicted and the challenges that have been met are elucidated. Their education systems are confronted by problems on several fronts: incongruence between skills of their labor forces and requirements of the workplace, strong examination-oriented tendencies, weaknesses in teacher education, limited chances for teachers to participate in the decision-making process, and unequal opportunities exacerbated by the tracking system. Quality education in Hong Kong and Shanghai should afford an environment that is conducive to nurturing well-rounded persons by deferring the tracking of students, by controlling the pressure of examinations, by improving teachers' professionalism, and by paying more attention to the educational needs of the disadvantaged.