The pair, identified in local media only by their surnames, Mr Teng and Ms Zhang, put their third child up for adoption and were arrested by Shanghai prosecutors after they accepted money for the child.
They had been seeking between 30,000 yuan and 50,000 yuan (£3,000-£5,000) for the girl, who was advertised before she was born.
The couple already had two boys, but earlier this year Ms Zhang found herself "accidentally pregnant", the >Liberation Daily newspaper reported.
Both Teng and Zhang were unemployed, poorly educated and living off their parents. As soon as Ms Zhang began to show, she lied to her neighbours and said that she had a stomach tumour, using her illness as a cover. She then gave birth at home.
The investigators said the couple had told them they wanted the girl to have a better upbringing than they could afford, since they already had two children.
"We did not give the child away to obtain profit, but to give the child better guarantees," one had told them, the newspaper reported.
Last year, a teenager sold his kidney and used the proceeds to buy an iPhone and iPad.
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