The ring abducted babies in Yunnan province and sold them in Hebei and Shandong in northern China, Police department of the Chinese Ministry of Railway said.
The police have arrested 76 suspects so far.
The ring purchased the infants at a price of about 10,000 yuan (USD 1,582) each in Yunnan and sold them in Hebei and Shandong for 20,000 to 50,000 yuan, it said.
The ring is connected by well-organised members who abduct, purchase, transport and sell the infants for adoption Wang Ansi, state-run Xinhua news agency quoted police officials as saying.
Chinese police have beefed up their efforts to crack down on human trafficking rings.
In 2011, police across the country rescued 8,660 abducted children and 15,458 women after breaking up 3,195 human trafficking groups.
A DNA database for missing children set up by the Ministry of Public Security has helped over 2,000 abducted kids return home as of February 2012.
Child trafficking has emerged as a major challenge for the Chinese government in the recent years.
According to unofficial data two lakh children go missing in China every year.
Most of those stolen are children of migrant workers who were traded for a few hundred dollars and few were ever found.
Loosing a child is a nightmare for parents in China as they have already been restricted to have more children by one child policy.
Chinese police across the country rescued over 20,000 abducted women and children in 2011 and busted 3,195 human trafficking gangs and hundreds remained to be traced.
Rural couples with no children are known to adopt abducted children, the Xinhua report said.