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from http://english.cri.cn/811/2006/05/07/421@85556.htm

Rare Mirage Lasts for 4 Hours off East China Shore

2006-05-07 19:57:23      Xinhua

(A mirage appears off the shore of Penglai City in eastern China’s Shandong Province on Sunday, May 7, 2005. Photo: China Photo Press) (A mirage appears off the shore of Penglai City in eastern China’s Shandong Province on Sunday, May 7, 2005. Photo: China Photo Press) Thousands of tourists and local residents witnessed a mirage of high clarity lasting for four hours off the shore of Penglai City in east China’s Shandong Province on Sunday. Mists rising on the shore created an image of a city, with modern high-rise buildings, broad city streets and bustling cars as well as crowds of people all clearly visible. The city of Penglai had been soaked by two days of rain before the rare weather phenomenon occurred. The mirage took place during the week-long Labor Day holiday. The small city received over 30,000 tourists on Sunday. Experts said that many mirages have been recorded in Penglai, on the tip of Shandong Peninsula, throughout history, which made it known as a dwelling place of the gods.

from http://en.wikipedia.org/wiki/Penglai_City

Penglai City (simplified Chinese: 蓬莱市; pinyin: Pénglái Shì), is a port, a town and an administrative subdivision of Yantai City, Shandong Province, China. The port was formerly called Teng-chou (Wade-Giles).

Penglai is the northernmost part of mainland Yantai and in central Yantai. Except for the Bohai Sea to the north, Penglai is entirely surrounded by Yantai…

Penglai was the first port on the Shandong peninsula that was opened to foreigners in the 1800s, so it was the first place Christian missions were established. Subsequently, it was overshadowed by the port of Yantai (Chefoo), 55 miles to the west. Its scenery has earned the city fame as the fabled landing spot on Earth for the Eight Immortals. The city is also famous for its mirages out at sea, which are frequent during May and June.