Police swooped last week after two groups of strippers gave "obscene performances" at a farmer's funeral in Donghai County, Jiangsu province, Xinhua news agency said.
The disrobing served a higher purpose, the report noted.
"Striptease used to be a common practice at funerals in Donghai's rural areas to allure viewers," it said. "Local villagers believe that the more people who attend the funeral, the more the dead person is honoured".
Wealthy families often employed two troupes of performers to attract a crowd. Two hundred showed up at last week's funeral.
Five strippers were detained and local officials "issued notices concerning funeral management", Xinhua said.
Now village officials must submit plans for funerals within 12 hours after a villager dies. And residents can report "funeral misdeeds" on a hotline, the report said.