Chinese newspaper told to suspend website amid claims of ‘negative news’ extortion
Staff said to have threatened listed companies with negative reporting unless they signed advertising contracts
Chinese authorities have ordered the Guangdong financial newspaper 21st Century Business Herald to suspend its website amid allegations its staff were involved in extortion.
They told the newspaper to “rectify” its editorial department and business operations and also revoked the publication licence of Moneyweek magazine, a stablemate of the Herald owned by the 21st Century Media Group.
The orders were made on Tuesday and reported by Xinhua on Thursday.
Since last September, several staff from the publications, including the former president of the group, have been placed under investigation for alleged involvement in extortion schemes.
At least eight executives and editors of the website, as well as two executives from a Shanghai and a Shenzhen public relations firm, have been detained by police.
The State Administration of Press, Publication, Radio, Film and Television together with related Guangdong authorities said those detained had tried to extort money from listed companies – and companies about to issue IPOs – by threatening to conduct negative reporting.