The directive came as one residential compound in the district was classified as high-risk on Saturday and an increasing number of cases were detected in the area.
Over 500 flights from Shanghai's two major airports were cancelled on Friday, data from flight tracker VariFlight showed.
Several Indian students, mostly studying medicine, held a demonstration in front of the Chinese embassy in New Delhi demanding Beijing to permit their return to re-join their studies.
COVID-19 resurfaced in Wuhan after the city dealt with the first surge of coronavirus cases in December, 2019.
Now, the country is on high alert as an outbreak of cases connected to the international airport in the eastern city of Nanjing touched at least 17 provinces.