New Year's celebrations in the Chinese city of Shanghai turned to tragedy as 36 people were killed in a stampede.

A statement from the Shanghai government confirmed another 43 people were injured in the chaos.

The stampede happened at the city's riverfront Bund area, which is usually jammed with spectators for major events, at 11.35pm (local time), according to the Xinhua news agency.

Photographs on Weibo, the Chinese version of Twitter, show one person doing chest compressions on a shirtless individual, while other people lay on the ground nearby.

Another image shows the area ringed by police.

It was not immediately clear what triggered the stampede, but state media and a witness said the incident was caused when people tried picking up fake money thrown from a building.

A man who brought one of the injured to a local hospital for treatment said fake money had been thrown down from a bar above the street as part of a New Year's celebration.

People rushed to pick up the money, triggering the stampede, said the man, who declined to be identified.

Angry family members clashed with security guards at a hospital where some of the victims were taken.

Authorities had shown some concern about crowd control in the days leading up to New Year's Eve.

They had cancelled an annual 3D laser show on the Bund that last year attracted around 300,000 people.

The historic riverfront strip runs along an area of narrow streets surrounded by restored old buildings, shops and tourist attractions.