James Chang/ Shanghai Daily news

The quality of the city's nearby ocean water improved slightly in 2007 but there are still serious challenges, according to the city's latest oceanic ecology report.

The report, issued annually by the Shanghai Oceanic Administration, says severely polluted ocean areas were shrinking at the end of last year compared to previous years.

There were improvements in 13 of the 15 major water quality standards including Chemical Oxygen Demand, a major measure of water pollution.