Rescue vessels at the dock of Taihu Lake

Four people have now died from a yachting accident after bodies of the two missing college students were dragged from the water Thursday afternoon.

The two from Shanghai Jiaotong University were among the eight people including a tour guide and the skipper on board the yacht Wednesday, the last day of the three-day Tomb-Sweeping Day holiday, according to the Shanghai Municipal Tourism Bureau.

The accident happened at around 1 p.m. when their yacht hit the cable of a cargo ship on Taihu Lake in the city of Suzhou, the municipal maritime officials said.

The tour guide and one of the students died in hospital after treatment failed on Wednesday.

Four other people being treated in a local hospital are in stable condition now.

Rescuers said the person at the yacht's helm was trying to race the vessel in between the cargo ship and a tug boat, and the vessel hit the drawing cable between them.

The cargo ship had been tugged to where it was for repairs, they said.

Wednesday is the Qingming Festival, or Tomb-sweeping Day, and the last day of the three-day national holiday.