Is this where we get to recommend our favorite Shanghai books? I'm not super-well read (I've read the OPs rec), but mine are still:

• Life and Death in Shanghai by Nien Cheng (this covers GPRC-era Shanghai in a way no other book I've read has)
• Beyond the Neon Lights: Everyday Shanghai in the Early Twentieth Century by Hanchao Lu (reject the Great Man theory of history!!1! this tells the story of the common Chinese man during the same period as Stella Dong's book)

And just to throw a little flavor into my recommendation, a controversial book that is not great literature but does throw a little light on Shanghai youth in the early 80s is Candy by Mian Mian, a semi-autobiographical book by this still-living author who occasionally still pops up in Shanghai's "cultural" scene.

A book that's intrigued me for a long time is Creating Chinese Ethnicity: Subei People in Shanghai, 1850-1980 by Emily Honig which again covers one facet of the Chinese side of Shanghai's history. Another author who I have to try sometime is Wang Anyi, who is often cited as the best contemporary Shanghai writer writing about Shanghai and who has been translated into English. I'm also a fan of Chen Danyan's, but she hasn't been translated yet.

Last but not least, another author who isn't really literature but is definitely a great read is Qiu Xiaolong, with his detective Chen series of mysteries set in Shanghai. They are all pretty quick reads, and have the added bonus that Qiu is a native/new Shanghainese writing in English and also an almost perennial participant in M on the Bund's Shanghai International Literary Festival. I like him (and his books) a lot.