It's simply an island in the middle of the river surrounded by fog/mist. This comment explains that the meaning got lost in translation.
"The Chinese never intended to make it seem as those this was a mirage. They used the word "mirage" when they should have used illusion. The 'mirage' they were talking about, was that of the buildings, trees, and mountains looking like they were floating on the river. They never said that the buildings and etc. were themselves mirages. It was only after ITN and others started falsely reporting this, that people started getting the wrong idea."
http://www.youtube.com/watch?v=rfWUrHmHAZo_________________
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