An 800-year-old Chinese merchant ship carrying a cargo of porcelain has been raised by archaeologists from the South China Sea.

The Nanhai No. 1 treasury ship dates from the early Southern Song Dynasty (1127-1279) and was raised to the surface of the ocean with its precious cargo in a specially created steel cage, Chinese state news reports.

Believed to have between 60,000 and 80,000 items on board, the ship and its cargo are both in excellent condition and represent the largest find dating from the Southern Song Dynasty. It was discovered in 1987 near the city of Yangjiang, in Guangdong province, lying in over 65ft of water at the bottom of the sea.

The vessel, whose name means South China Sea No. 1, will be placed on display in a glass pool at a museum where the conditions will mirror those on the sea bed. Visitors to the new museum, run by the municipal government of Yang Jiang, will be able to watch the excavation of the vessel continue through windows in the sides of the pool from the end of next year.

Items discovered on board the Nanhai No. 1 include blue porcelain, green-glazed plates, copper coins, gold and silver containers, belt buckles and jewellery.

The cargoes of a number of Chinese merchant ships were discovered and sold off at auction in the West during the 1980s, including porcelain, gold, silver and antiques.