Xiangyang market used to be Shanghai's playground for trademark counterfeiters and copyright pirates. No more, read more here. However, the economics of demand and supply have provided new outlets for these illigit goods. Like a waterbed, the problem has moved now to Puxi and Pudong. Read a post on these markets at the Mad about Shanghai blog here.
Read about Taobao (IPR infringements taboo?) as another contender for the position the Xiangyang market held, here.