By last year, 1,239 centers had provided 46,000 beds to 1.5 million people, which translated into 10 days for each person, the ministry's figures showed.
And of the centers, only 200 have facilities specially catered to children.
Last year, such centers for children received more than 73,000 children with their 6,000 beds - which meant that each child stayed for 15 days on average.
However, a child needs on average at least 30 days' stay in a center to receive basic care, education and psychological instruction, and skills training to find jobs in the future, Yang said.
The centers, which also house adults, the disabled or seniors, caused inconvenience to children as well, Yang said.
To help plug the problem, the country's 11th Five-Year Plan (2006-10) has allocated 700 million yuan ($99.9 million) to establish 350 children hostels in large cities.
From 2007, more than 100 hostels have been under construction and another 200 hostels will provide roofs for children by 2010.
Libraries, medical, sports and entertainment facilities will be also available at the centers.
By 2010, there will be 40,000 beds for 500,000 children to stay in the centers for at least 30 days each.
"It will be five times the current capacity," Yang said.
During their stay, the youngsters will receive health care, psychological education and basic skills training for future jobs. After that, authorities will try to send them to hometowns to reunite with their parents, while orphans will be accommodated in orphanages.
Apart from the improvement on facilities, work methods at the hostels should also be improved, Yang said.
Zhu Qinghua, director of the help center for children in Suzhou, Jiangsu province, said earlier this year that social institutions for children should make better use of the government's database and media to track and aid homeless children.
"The database has offered platforms for hostels across the country to better coordinate and exchange information to increase their work efficiency," Zhu said.
Still, while measures to improve facilities for homeless children and to crack down on criminal rings that have controlled them have led to a notable decrease in their involvement in crimes, Yang said this has been replaced by a worrying trend in recent years - begging.
A majority of homeless children, aged above 14, now make a living by begging, Yang said.
"They left home for jobs in cities but failed to meet employment requirements because of poor education. In the end, they turned to begging," Yang said.
(China Daily April 10, 2008)