State media said rescuers heard calls from inside the capsized ship and about a dozen people were rescued.
The boat, The Eastern Star, reportedly sent no emergency signal, while an alarm was raised by those who had swum to shore.
The captain and the chief engineer, who both survived, had been detained, even as they claim that the boat was caught in a cyclone.
Chinese media quoted them as saying the vessel sank within minutes, while many people were asleep.
Most of those on board were tourists aged around 50 to 80 travelling from the eastern city of Nanjing to Chongqing in the south-west, a journey of at least 1,500km (930 miles).
The ship sank in the Damazhou waterway section of the Yangtze, where the world’s third longest river reaches depths of about 15m (50ft) deep.
Daily Independent
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