A British national was amongst 38 killed when two ships collided off Hong Kong on Monday night.

The cruise boat Lamma IV was carrying over 120 people, mostly employees and families of Hong Kong Electric, the vessel's owner.

The Lamma was packed with revellers on a trip to see the Chinese National Day fireworks when it collided with a ferry and sank off Lamma Island, an area popular with tourists and expats. Over 100 people from both ships were taken to hospital, but many were left trapped below decks as the ship went down.

The ferry was badly damaged, but managed to limp to port.

Television pictures showed the red and blue bow of the sunken ship pointing skyward, surrounded by rescue vessels as government helicopters with search lights circled overhead.

Survivors were being taken to hospitals on Hong Kong island and Lamma island.

A Foreign Commonwealth Office spokeswoman said: "We can confirm that there was one British victim who died in the incident in Hong Kong and we are providing consular assistance to their family."

Seven crew from the two vessels have been arrested on suspicion of endangering passengers by unsafe operation.

Authorities said five children died in the crash, the worst maritime accident in the city for 40 years.