Beijing: Over 260 passengers were injured, many seriously, after two high-speed metro trains on Tuesday collided in Shanghai due to signal failure, which was also blamed for the deadly bullet train crash in China two months ago that claimed 40 lives.

The accident occurred when a metro train smashed into the rear of another one after the signal system went haywire, sending the busy suburban network in China's largest metropolis and commercial hub into a spin, state-run CCTV reported.

Four foreigners, including two Japanese, one each from Canada and the Philippines, also suffered minor injuries.

The accident second of its kind attributed to faulty signal system took place as top Indian railway officials held talks with their Chinese counterparts to explore possibilities of using China's high speed technology back home.

Most of the injuries in today's crash were bruises and bone fractures and there were also external head wounds, doctors said.

The crash occurred about at 2:51 pm following a signal system failure at one station on the Line 10 subway, Shanghai Shentong Metro Group Co said in a statement, adding that about 500 passengers had been evacuated from the trains.

The signal system failure at about 2:10 pm meant the trains had to be directed over the phone by subway staff rather than by electric signals and run at slower speeds, it said.

Photos posted on, China's popular Twitter-like microblogging service, showed several passengers bleeding, with firefighters entering the train to rescue the injured.