The accident happened late Saturday evening, towards the end of the Lunar New Year festival, in the city of Changle when a group celebrating a birthday set off fireworks at their table inside the bar, the Xinhua news agency said.

This set the ceiling on fire, and the entire bar was soon engulfed in flames, the agency said, citing a city government spokesman.

"The ceiling was covered with sound-insulating material, which started raining down after it had caught fire," an unnamed firefighter told the China News Service.

"It stuck to people's skin. When they tried to wipe it off, the skin would be gone too."

According to China News Service, the bar, which also served as a restaurant, had a very low ceiling because it was set up in a room that had been divided into two.

"The flames spread very fast and many of the diners were unable to escape," said Li Ming, a customer who himself suffered light burns, according to Xinhua.

Adding to the tragedy, the exit opened inwards, meaning chaos as large numbers of people thronged to get out at the same time, China News Service said.

Xinhua said fire engines arrived immediately and the blaze was put out after about 30 minutes.

Fifteen were found dead at the scene, apparently suffocated, while fire fighters came across 20 others who were injured and sent them to hospital, the agency said.

Three were in a critical condition, and according to China News Service two died Sunday of their injuries.

Xinhua posted a photo of the blackened and gutted interior of the bar on its website.

The Chinese traditionally celebrate the Lunar New Year with fireworks and firecrackers.

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