Three million people in the Chinese rural areas came out of poverty in 2004, the largest in number over the past four years, a report said on Tuesday.

However, there are still 26 million people living under the poverty line in the rural areas without adequate food and clothing, Chen Xiwen, Deputy Director of the Office of the Central Financial Work Leading Group, a think tank of the central government, said.

In 1978, China had 250 million poor people, representing a poverty incidence of 30 per cent. With sustained efforts, their living conditions have witnessed significant improvement.

The central government will continue increasing capital investment on poverty reduction in rural areas, support the development of large agricultural product firms, which help rural people find jobs, the government said in a new policy guideline.

According to the document, local governments are also required to enhance investment, especially on farmer's professional training, in rural areas, Chen said.