Police said they have launched an inspection on every floor of the market but the cause of the blaze was still under investigation.
Established in 2000, the Qiufu Market was one of the earliest and biggest secondhand IT product market in Shanghai. It has 300 stalls and is well-known for bargain-priced electronics products.
Nearby residents had complained the market was too old and disorderly, as small-scale vendors piled up inflammable products, including electronics and home appliances, that could easily catch fire.
A further hazard was posed by the narrow streets, which made it difficult for fire engines to reach the scene.
Although the city's fire department had reminded markets and local residents to be aware of fire hazards during current cold, dry weather, two other blazes were reported in the city yesterday morning.
The first fire occurred at 8:45am in an apartment on Jiang'an Road in Xuhui District, after an electric blanket caught on fire and the flames ignited clothes, shoes and plastic items.
The second blaze was reported in Songjiang District at 11:40am, after a five-year-old boy had been playing with a lighter in his room. A fire broke out, damaging his home.
No one was injured in either fire, police said.
As part of a nationwide crackdown on fire hazards, Shanghai police inspected several plazas on Christmas Eve.
And similar inspections will be carried out at bars, cyber cafes, hotels and department stores from 8pm on December 31 to 1am on New Year's Day, said officials.
When tech meets whim, water gets life