Rescuers had recovered at least 50 bodies from the debris of the school building in Juyuan township, about 60 miles from the epicenter. Xinhua did not say if any students had been pulled out alive.
An unknown number of students also were reported buried after buildings collapsed at five other schools in Deyang city in Sichuan, Xinhua reported.
It said its reporters saw buried teenagers struggling to break loose from underneath the rubble of the three-story building in Juyuan "while others were crying out for help."
Two girls were quoted by Xinhua as saying they escaped because they had "run faster than others."
The earthquake comes less than three months before the start of the Beijing Summer Olympics, when China hopes to use to showcase its rise in the world.
Shanghai's main index inched up Monday, but the advance was capped by worries over inflation and potential damage from the earthquake. Analysts said that shares of companies located in the Sichuan region may fall in coming sessions due to the quake.
It struck in the middle of the afternoon when classes and office towers were full, about 60 miles northwest of Chengdu. There were several smaller aftershocks, the U.S. Geological Survey said on its Web site.
Calls into the city did not go through as panicked residents quickly overloaded the telephone system. The quake affected telephone and power networks, and even state media appeared to have few details of the disaster.
"In Chengdu, mobile telecommunication convertors have experienced jams and thousands of servers were out of service," said Sha Yuejia, deputy chief executive officer of China Mobile.
Although it was difficult to telephone Chengdu, an Israeli student, Ronen Medzini, sent a text message to The Associated Press saying there were power and water outages there.

We look at the Sage of Omaha's methodology for evaluating value stocks.
Intimate photos taken by Brad Pitt of girlfriend Angelina Jolie breastfeeding on...
In last week's report, I held out the prospect that the US government rescue package might result in a change in sentiment in financial mark...


Professional Website Design For Corporate - Get a Free Quote Today