Based on fieldwork in an urbanized village of Shenzhen, this paper analyzes the place of schools in the reproduction of Chinese state capitalism. It retraces the circuit of socialized capital that allows for the social reproduction of the native elite and the exclusion of many migrant workers in the context of Shenzhen’s development as a special economic zone and its efforts to upgrade the economy. The native villagers, now forming an urban upper-class of rentiers, have capitalized on their overseas connections and capital accumulation to finance their school, allowing for their elite’s upward social mobility after, but also already under Mao. After China’s transition to capitalism, this school has served as an asset in generating value in the context of redevelopment and the real estate-driven upgrading of Shenzhen’s economy. Property ownership is now a major criterion in points-based systems for accessing school places. I make two interrelated arguments. First, there is a closer relationship between the secondary circuit of socialized capital and the larger circuit of capital than what the literature on social reproduction implies. Second, the conditionality of quality education upon value generation amounts to separating the population deemed worthy of socialized reproduction and the surplus population that is left out. The paper connects diverse strands of social reproduction theory, Althusser’s interpellation and ideological state apparatuses, feminist agentive social reproduction theories, and Bourdieu’s capital conversion recuperated within a Marxian framework, to provide an integrated approach to social reproduction within capitalism.