Two clinical strains of Klebsiella pneumoniae (K. pneumoniae) and one isolate of Escherichia coli (E. coli) were collected from two large general hospitals in China. Conjugation experiment, susceptibility testing, isoelectric focusing, PCR, and sequencing techniques as well as clone, expression, purification and kinetics were carried out to describe the characterization of the novel SHV-tpye enzyme. The analysis of plasmid profiling and pulsed-field gel electrophoresis of the novel enzyme were performed to investigate epidemiology. These isolates had CTX-M-14 and SHV-89 beta-lactamases. SHV-89 beta-lactamase of pI 7.6 is a novel variant with two substitutions compared with the sequence of SHV-1: Leu35Gln and Met129Val. Its gene also had two silent mutations at positions 369 and 774, respectively. The results of substrate profiles and MIC determinations showed the activity of the novel enzyme was insufficient for the enzyme to count as an extended-spectrum beta-lactamase (ESBL). The substrates of the enzyme were also characterized. Furthermore, the three novel SHV enzyme-producing strains were epidemiologically unrelated. The emergence of a novel SHV-type beta-lactamase is rarely described in other areas. This study illustrates the importance of molecular survelliance in tracking SHV-producing strains in large teaching hospitals and emphasizes the need for epidemiological monitoring.