china stampede new year's eve
Relatives of a victim hug as they wait at a hospital where injured people of a stampede incident are treated in Shanghai January 1, 2015.REUTERS/Aly Song

At least 35 people were killed and 43 injured in a stampede during the New Year's Eve celebrations at Chenyi Square in China's Shanghai city.

The incident took place at Bund – Shanghai's famed waterfront tourist strip, where people had gathered to collect what looked like "dollar bill" being thrown from the third-floor window of the building, a witness said, IANS reported.

The witness said the people gathered alongside the river bank near the building to collect those coupons started to scramble, which resulted in the stampede.

Soon after the incident, the city authorities began rescue operation and aid the wounded.

The official Xinhua news agency said most of the injured were students and the actual reason behind the stampede is yet not certain, Reuters reported.

The government has begun an inquiry into the incidnet and city leaders are visiting victims at hospitals and giving a round to the incident site, according to the government's official microblog. The government will also call an emergency meeting to ensure the safety measures throughout the city are beefed up.

The authorities had earlier expressed their concern about the crowd control on days nearing the New Year's eve and had also cancelled an annual 3D laser show on the Bund, which was attended by as many as 3,00,000 people last year.