The suspects identified only as Teng and Zhang face multiple counts each of trafficking women and children, CNN reported Saturday.
China's Ministry of Public Security said the wife has posted bail while the husband remains in jail.
Shanghai police said they began investigating the couple earlier this year after receiving a report that they had listed an ad for their newborn girl through the Chinese instant messaging system QQ, the ministry said. The couple were arrested in June and allegedly admitted to selling three of their newborns in recent years for a total of $13,000.
The couple alleged that the buyers of their children voluntarily gave them money and that they did not ask for payment.
Police said the couple used the money to buy themselves luxury goods, including iPhones and computers, which have been confiscated, China's state-run news agency Xinhua reported.
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