MORE than 2,000 Chinese rescuers had saved 21 people by 8:30am today after a North Korean cargo ship capsized in the sea near east China's Shandong Province yesterday afternoon.

The crew members have been sent to local hospitals and rescuers are still searching for the two missing people, Xinhua news agency reported today.

The accident happened in the Yellow Sea area between Yantai and Weihai cities, about four nautical miles from the shore, said an official with the provincial maritime bureau.

Chinese authorities arranged 2,000 residents, 500 soldiers and dozens of ships to search for the missing crew, the report said.