The jet is thought to have crashed in the Indian Ocean on March 8 with 239 people aboard, but a search has found no trace. There were 153 Chinese passengers aboard.
Malaysian Deputy Foreign Minister Hamzah Zainuddin said Thursday six Malaysian and one Chinese family had so far received payment. He said full payout would come after the plane is found or officially declared lost.
However, Steve Wang, a spokesman for some of the relatives, said Friday families of 127 Chinese passengers indicated they'll reject the advance payment, partly because they think Malaysia Airlines should provide economic assistance while the search continues.