According to authorities, no one was hurt as the street gave way just after midnight on Wednesday - with an official statement saying the incident happened outside a shopping mall on Cuibai Avenue in Yibin, a city of around 5.5million people in Sichuan Province.
State media report that around 500 square metres (5,380 square feet) of the road suddenly gave way, leaving a giant sinkhole in its place.
Provincial TV station SCTV shared footage of the moment the ground began to crumble, with parked cars disappearing into the hole.
Rescuers were sent to the street to look for any victims through the night, but officials said no one was found to be injured.
The cause of the collapse is currently under investigation, with Chinese state broadcaster CCTV saying experts have examined the ground near the site and deemed it safe to be used by residents and traffic.
It added that relevant utility providers have taken actions to prevent secondary incidents.
Sinkholes are a bizarre phenomenon that crop up everywhere, including one that ate up a car in Essex earlier this year.
The hole appeared in a suburban neighbourhood in the early hours, with pictures from the incident on Hatch Road in Brentwood showing a Toyota sitting nose-first in the large hole.
Residents found the incident very 'unusual', and had come out of their homes to see what had happened.
Local Ollie Watson, 50, came across the dramatic scenes outside of his house at around 2.30am.
He explained that he didn't actually hear anything out of the ordinary as the car plunged into the hole a few doors down from his home, and only went out to investigate after his daughter mentioned something about a disturbance outside.
He said: "I thought it was a road accident at first. We didn't hear it. Our daughter heard a bit of a commotion.
"We then thought that the fire brigade had cut the car in half - but it was actually just sticking out of the hole.
"It's very unusual. My neighbours were out there, and a few people from across the road.
"I imagine that it will sit there for a while. They must be worried about more sinking, I suppose.
"I had to be let through the cordon to go to work this morning."