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The ship was reportedly docking at the port of Zhenjiang when it capsized at 2.25am, flinging the 24 people on board into the water
According to the report, 17 of them were rescued but two children died after being given medical treatment.
Rescue workers are still searching for the missing seven.
The cause of the incident is being investigated. No collision was reported.
The ship had made a stop at Majishan Port in Zhejiang province before it made its way to Zhenjiang.
Its iron ore cargo belongs to Baosteel, and was to be sold at Zhenjiang port, an industry insider said.