The news agency said the site had been cleared, implying that no further bodies were expected to be found and that an investigation was underway.
Xinhua said the explosion caused the two-story building to collapse into a heap that also buried several cars.
It said the club's owner was among the dead.
Also Wednesday, a theatre manager in the central province of Hunan died as he evacuated his building during a fire.
Xinhua said it was the only confirmed death in the incident, and happened while the manager helped more than 100 people, including many children, escape the fire.
The exact cause of his death was not known, Xinhua said.
has recently seen a spate of explosions, fires and accidents in shopping malls, cinemas and other public places despite repeated government promises to improve safety standards.