The number of small-scale individually owned businesses in China reached 25.1 million at the end of June, an increment of 1.09 million, or 4.54 percent, on the same period of last year.

This was revealed by sources at a national conference on market regulation and harmonious development held Thursday in Shenzhen, an economic engine in south China's Guangdong Province.

The sources said at the end of June, China had 3.43 million state-owned enterprises, 4.65 million private companies, 264,000 foreign-funded companies and 25.1 million small-scale individually owned businesses.

As part of the market regulation campaign, officials across China have since 2004 shut down 11,000 smaller enterprises that consume excessive amounts of energy or generate excessive pollution. Approximately 23,000 unqualified businesses have had their licenses revoked.

Meanwhile, an enterprise credit supervision system has taken shape in the country. A total of 5.22 million enterprises have been deemed trustworthy and 1.34 million untrustworthy.

The sources said market regulation efforts would focus on various types of fraud relating to registered capital, bogus investments, or illegal withdrawal of investments.

(Xinhua News Agency September 29, 2006)