The epicentre of the quake, that struck the Dali Bai Autonomous Prefecture in the province at 9:45 am, was located in the border area between Eryuan and Yangbi counties, with a depth of 11 km.
Yunnan Provincial Civil Affairs Bureau had confirmed nine persons being injured, state-run Xinhua news agency reported.
A 60-member rescue team dispatched by the public security and firefighting departments has rushed to the affected area.
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The Yunnan Provincial Civil Affairs Bureau has dispatched 4,000 tents, 2,000 clothes and 1,000 quilts to the affected people while the provincial disaster relief and civil affairs authorities have dispatched a work team to the area.
"We really felt the shake, which lasted a long time. Residents rushed out of their houses for shelter," said Xu Yuhua, a villager in Liantie town.
Leading officials in Dali have also rushed to the affected area to guide rescue and relief work.
In March, a 5.5-magnitude earthquake injured 30 people in Eryuan.
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