The most common and most likely answer to this crossword clue is the 7 letter word SEAPORT
I've seen this crossword clue in The Daily Telegraph
S
E
A
P
O
R
T
More clues leading to the result SEAPORT
- Physical game involving each coastal settlement
- 24 perhaps, each to display houses
- Running water interrupting game in Southampton, say
- It’s key to adult having fun around Hull or Grimsby, say
- Spring hasn’t begun in rank coastal town
- Deal maybe once each in game
- Town on the water, type harbouring each launch in Portsmouth?
- Play about Eastern area, somewhere like Shanghai
- Where sailors go to drink water and wine
- A poster put out in Chennai, for example
Buddy explains!

The straight part
We know that "somewhere like Shanghai" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case somewhere like shanghai = seaport.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does SEAPORT mean?
SEAPORT noun- A town or harbour with facilities for seagoing ships to dock and take on or discharge cargo.