What is missing from this movie is drugs. There are the requisite mobsters, poverty, prostitution, violence, etc, all the trappings of contemporary urban China but without the drug use I can't buy it. It's not real.
Another thing that bothered me is the scene where Dongzi is messing around with the mirror and he pulls a white worm out of somewhere. Where did that come from!?!?!? Gross!!!
Why it can't be realistic? We get to know in detail only 3 characters: Dongzi who is a honest hard-worker, Ruan Hong the "singer", and Gao Ping, the scoundrel.
Now, not every scoundrel like Gao Ping is a drug-addict. Besides I don't think the situation in China during the late 80's could be compared with let's say, today's New York City. Surely drug-traffic existed back then in China but I doubt it was in the same level than in western countries. Nowadays, I am not sure.