China will establish state scholarship system to help impoverished undergraduates and graduate students, according to the Sunday edition of Beijing Youth Daily.

The newspaper quoted sources from the Ministry of Education as saying that the ministry will allocate about 200 million yuan annually to sponsor 60,000 students from impoverished families.

The sponsored students should be good at studies, according to the report.

Currently, Chinese universities and colleges are helping impoverished students in several ways, including offering scholarships, grant-in-aid loans, offering work opportunities, distributing subsidies and reducing tuition.