The seven-person jury, headed by Chen Kaige and Fernando Trueba, said that 'the truth of life has been expressed with laughs and tears in the film'.
The film also won best actress for its ensemble female cast including Corinna Harfouch, Dagmar Manzel, Kirsten Block and Christine Schorn.
A German production, Chris Kraus' Four Minutes, also won SIFF's top prize last year and went on to win the top prize at the German Film Awards.
Swedish/Finnish co-production The New Man by Klaus Haro was awarded the Jury Grand Prix while best director went to China 's Tian Zhuangzhuang for The Go Master. Tian's film also won best cinematography for the work of Wang Yu.
Other award winners included:
Best Actor: Juan Jose Ballesta - DOGHEAD (Spain)
Best Screenplay: Shemi Zarhin - AVIVA MY LOVE (Israel)
Best Music: Isao Tomita - LOVE AND HONOR (Japan)
Special Award of the 10th Shanghai International Film Festival: THE KNOT (China) by Yin Li