i have my friend's house in shanghai i wanna go to see him ..

You don't need to provide the hotel booking if you live in your friend's house, but your friend needs to send you an invitation letter together with the copy of his passport and Chinese residence permit.

thank you

but where can write this invitaion ? and he can send it in fax?
thank you

The invitation letter can be just written by your friend himself, enclosed with your name and passport number, address and telephone number, purpose of visit, duration of stay and specific itinerary.
I think either faxed or emailed will be accetable. You should conform with the visa office of the Embassy ahead of your submission.

could you tell me is the invitation letter version with English or Chinese? Thanks

Generally, invitation letter written in Chinese is ok (remember to sign your signature and attach a copy of your ID card or passport).