When I was there 2x about a month ago, there were transit counters in place, but they were not open/staffed either time...so, I had to go thru customs and then check back in, which was no big deal...the air-side transit seemed like a work in process. Not sure if they have opened it up yet.

Someone else will have to answer the lounge question, because the whole air-side transit thing is new at PVG.