I asked Google and I believe "Shangywood" is a term for China's film Industry. I don't know how popular that term is because I have never heard of it. It must be similar to how we call America's film industry "Hollywood" and India's "Bollywood".

There is no such word as 'shangy' in English. It has no meaning. If 'Shangywood' is a term based on 'Hollywood', to refer to the Chinese film industry, I'd presume that it is a made-up word suggesting the name of the Chinese city 'Shanghai' : Shanghai-wood --> 'Shangywood'. By the way, you shouldn't be surprised that this has no meaning. The capital 'S' tells you that this is a name, and names in English are generally not meaningful.

What's the source? Obscure questions like this need a source for us to reference.