Business 'incubators'

China has 548 "incubators" for start-up companies, the second most in the world after the United States, statistics from the Ministry of Science and Technology indicated.

The so-called incubators have helped 19,896 hi-tech companies, of which 569 have annual revenue of more than 100 million yuan. In addition, 53 were listed on either domestic or overseas stock exchanges.

China originally borrowed the idea of incubators from the United States. They are designed to create a convenient and efficient environment for start-up companies, as well as in providing financing, tax and land incentives. The country's first incubator project started in 1987 inWuhan, capital of Central China's HubeiProvince.

As part of the effort, the government and sate-funded policy banks are financing smaller venture capital funds, primarily for hi-tech research and development.

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