A 24-year-old man who was shot in the chest in the Christchurch suburb of Woolston on Wednesday night is now in a serious but stable condition in Christchurch Hospital.
His condition earlier was critical.
The Armed Offenders Squad was called to an address in Gould Street at about 11.30pm on Wednesday, after gunshots were heard.
Police say an earlier altercation was also reported at a Radley Street address, from where it is believed the offender left in a red Mazda Astina.
That car was later found burnt out on Marine Parade, in the suburb of New Brighton.
Acting Detective Inspector David Long says police have located everyone of immediate interest to the inquiry but no charges have yet been laid.
They are still seeking the firearm, which is believed to be a pistol.