BEIJING -- College graduates in China prefer to work in second-tier cities and at State-run enterprises, a new employment report has suggested.

Only 42 percent of those who graduated in 2012 hope to work in Beijing, Shanghai and Guangzhou, which are recognized as China's most competitive cities. Some 53.8 percent of 2011 grads targeted work in these three urban areas, according to a report jointly released on Friday by a research center affiliated to Peking University and headhunting website Zhaopin.com.

The trend of "fleeing" cities like Beijing is becoming more apparent, which will help provide a greater pool of talent for employers in smaller cities, said the report.

It added that jobs in SOEs are the most desirable for 2012 graduates, followed by offers from foreign companies.

College graduates tend to assess employers based on salary and welfare packages, and opportunities for personal development and promotion, according to the report.

2012 in review