Two passenger boats collided on Monday night near Lamma Island off the southwestern coast of Hong Kong Island, killing 36 people, reports said.
One of the boats, carrying 124 people was a chartered boat packed with revellers who were on a holiday weekend cruise to watch the fireworks at Victoria Harbour.
The other one, a ferry which did not capsize, was carrying dozens and was operated by the Hong Kong and Kowloon Ferry company.
Rescue officials rushed to the help of the passengers and the government said that 101 people were rescued.
The government statement said low visibility and obstacles on the boat were making rescue efforts difficult. It said the possibility people were still in the vessel or missing could not be ruled out, though it did not give numbers.
Survivors said the boat started sinking rapidly after the collision. One woman told local television that she swallowed a lot of water as she swam back to shore. Another man said he didn’t know where his children were. Neither gave their names.