The Shanghai Institute is the Institute located in Shanghai, China.
In the 1800s, the Institute was run by the parents of Jem Carstairs: Ke Wen Yu and Jonah Carstairs. At one point, Ke destroyed a demon, and the vengeful sire of the nest, Yanluo, bided his time until it found a weakness in the Institute's defenses.
Eventually, in 1872, he broke in and killed everyone in the Institute but the Carstairs. To torment Wen Yu, he injected the young Jem with his own poisonous demon blood, causing the boy to come in and out of consciousness while both Wen Yu and Jonah were slowly tortured and killed—a battle they fought for at least a day. The next time Jem woke up, his father was already dead, and Wen Yu died shortly after. Over time, the Shanghai Enclave grew suspicious of the Institute's silence, and they arrived and killed the demon but only managed to save Jem.