We began our trip in China by Shanghai and the UTELS in Shanghai was a good deal. Not centrally located but you have easy access to the main places of the city thru the subway.
We had a double room quite big. As many hostel in China, the bed mattress was thiny but was the best we got in the country. Bathroom was ok and clean (not a turkish toilet !)
The hostel itself has a tourist information desk, a pretty nice common area to have a drink, a meal or just to rest after a hot day in Shanghai. We read there was a free buffet breafast included but never tried.More