Footage of Friday's fatal accident caught on a mobile phone and published by state media went viral on social media late Saturday.
Investigators had initially concluded that the girl's seat belt broke and the safety bar failed to prevent her being thrown off the ‘Travel Through Space’ ride in Chaohua Park , Chongqing municipality, the West China Metropolis Daily reported on Sunday.
The parents have agreed on 870,000 yuan (127,000 dollars) in compensation with the park for the death of their only child, the Chengdu-based paper reported.
The ride was inspected and found fit for use in December, the report said, although the relevant website indicated the last check-up as having taken place in 2013.
China's national safety authority has ordered all fun parks with the ride to suspend its operation until further checks have been made with the Chengdu-based company that manufactures it.