Visa issue about working

I had been working in China but recently my company had asked me to leave. They have cancelled my work permit (Red book) but my residen permit( Valid until July 2015) on my passport is still there. Work permit was cancelled in August.

My previous company had mentioned i can still stay in China and look for job till my work permit expires.
In case i find a job in China do i need to exit to apply for the new Z visa??? or it can be processed in China itself??