Night view of Lujiazui Financial and Trade Zone of Pudong in Shanghai, on July 8, 2017. [Photo/VCG]

Shanghai is the seond best city for startups in China, according to latest ranking.

The city has 878 companies trading on the country's new over-the-counter market and 89 national platforms for entrepreneurship and innovation.

The list released by a business analysis platform, and UrWork, a co-working office space company founded in 2015, is based on big data provided by Tencent Research Institute.

According to the study, three factors were used to measure entrepreneurship in each city: the number of enterprises or business projects, business environment, and talent support.

Other cities make into the list include Beijing, Shenzhen, Guangzhou, Hangzhou, Wuhan, Tianjin, Suzhou, Chengdu and Nanjing.