A popular tourist spot is Qingdao's TV tower in the middle of the city surrounded by a large park. The cache is hidden nearby this huge building and communications tower. At time of hiding the cache contained Canadian coins and a sand dollar from British Columbia, Canada.
A taxi ride to the tower from most places in town will cost you Y10-20 and more than likely the driver will want to wait for you at no additional cost. The admission price to the tower is either Y30 or Y39 (including lunch). Depending on the smog and fog, the view might not be worth it.
A word of caution: like my Barcelona's Gecko cache, be careful when leaving the usual touristy spots of the park. A lot of garbage and such is around, so you might want to take a peak at the hint and spoiler pictures before attempting this cache.
Partial spoiler: This particular geocache uses my standard international cache container. You can learn more about these containers here.