The SITC Danang container ship, which sails under a Panamanian flag, collided with a fishing vessel around 15 minutes after midnight (1615 GMT), state broadcaster CCTV reported.
The impact caused the fishing vessel to sink, and eight people aboard fell into the water, the report said.
As of CCTV's report at just after 8:00 pm, none of the missing people had been found, and search and rescue efforts are still underway.
After receiving notice of the incident, Hainan emergency response personnel dispatched military and police search teams to the site -- as of 5:30 pm, 21 ships and five aircraft were at the scene, CCTV said.
An image published by the broadcaster showed a bright orange emergency life raft floating on the area of sea where the collision happened, though no people were visible.
"The cause of the the accident is under investigation," added CCTV.
The collision occurred about 40 kilometres (25 miles) from the town of Yinggehai on the the far southwest coast of Hainan, according to the report.
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