XI'AN ?-- An explosion hit a town in Fugu County in Northwest China's Shaanxi province on Monday afternoon.

The accident happened around 2 pm near a hospital in Xinmin Township. The explosion severely damaged houses and cars at the site, and the hospital was also affected. Several people were seen covered in blood, according to witnesses.

The accident "might be related to unlicensed storage of explosives," the local Huashang Newspaper cited local residents as saying.