Education inequality has been a challenging issue worldwide, and disparity across schools constitutes a significant proportion of total inequality. Effective policies to turn around low-performing schools (LPS) are therefore of great importance to both governments and students. The Elite School Education Group (ESEG) policy is an emerging one, and it has quickly become very influential in China, a country with one of the largest and most diversified education systems in the world. Under this policy, elite public schools (EPS), which have exceptionally enriched educational resources (i.e., high-quality teachers, strong principal leadership, excellent school cultures, etc.), are encouraged by the government to build school groups with LPS. Within the school group under the elite school brand, branch schools (i.e., the previous LPS) can share all kinds of resources from the EPS (including teachers and principals), and they may even utilize the prestige of the brand itself as a means to attract high-performing students. The ESEG policy enables the delivery of multiple turnaround interventions to LPS in an autonomous way, through building partnerships between EPS and LPS. While some LPS are successfully turned around, some are not. It depends on the effectiveness of the reforms undertaken in the branch schools. Of particular importance is the access to strong principal leadership, excellent teachers, and the school cultures from EPS. Incentives for EPS to participate in this reform include obtaining flexibility in personnel management, expanding school scale and influence, and mobilizing other resources. Despite the potential positive influence on the branch schools, the ESEG policy may have a more complex influence on the entire education ecology than initially expected. Indeed, there are now some concerns that the ESEG is creating new LPS, because more and more high-performing students are drawn out of normal schools and attracted to the ESEG-partnered schools during admission. Thus, the effectiveness of the ESEG policy should not be solely based on attracting high-performing students, but on improving overall education quality.