SHANGHAI - Online gaming companies in Shanghai have set up an association to promote the healthy development of the industry.

According to the association, founded over the weekend, Shanghai has 600 online gaming enterprises, employing about 60,000 people. The sector is valued at 36 billion yuan ($5.3 billion), or one third of the nation's total.

Chen Libiao, president of the association and COO of Youzu Interative Co Ltd, said the association will promote research, exchange, training, exhibitions, intellectual property protection, and information sharing in Shanghai's gaming industries.

China is the world's leading online games market with about 370 million gamers. The revenue of the sector has been growing by around 30 percent annually in the past eight years, according to data from Ministry of Culture. Top players include Tencent, NetEase, Shanda, and Changyou.