is it possible do a working visa from a M type?

Hello!
with my girlfriend, we're in PRC for an intership with a M type and now we've decided tu stay here, we will go in shanghai, for looking a job e to ask for a Z type but after the 2013 july's REFORM we are a littel bit confuse. my questions are: I can looking for a job during this time that i'm here with the M type? And if we found it, can we do the Z type here or in Hong Kong, or we've to come back in Italy (ours country) to do it? We've the same questions for work in Hong Kong