NASDAQ-listed Chinese Internet company Sina Corp was slapped with a 5 million yuan (US $820,00) fine by a court in Beijing and received notice that two of its publishing and video licenses will be revoked.

Sina Corp confirmed that it has received notices from the government that two publishing and video licenses will be revoked due to what authorities described as indecent and unhealthy content.

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The licenses that will be revoked by the State Administration of Press, Publication, Radio, Film and Television are Sina's Internet publication license and the license to transmit audio-visual programs online.

Aside from losing the two licenses, Sina was also fined about US $820,000 by the Beijing Municipal Cultural Market Administrative Law Enforcement Unit for violation of certain laws that prohibit online pornography.

Sina insisted that the content in question was posted by users or originated by third-parties. The contents in question include 20 articles and four videos posted on Sina.com that were deemed pornographic. Sina.com has more than 100 million users.

The company said it was still evaluating the effect of the penalties to its overall business but said that it is fully cooperating with the Chinese government and concerned authorities.

Losing the two licenses means that Sina will no longer be allowed to offer online reading services or video services altogether. It would have to find business partners with the proper licenses to offer the services again through a joint venture or partnership agreements, experts said.

Sina owns the Twitter-like Weibo Corp and was planning to take Weibo public with plans to raise up to US $500 million in an IPO.

Sina was so far the biggest haul in the Chinese government's intensified fight against online pornography, which has already resulted to the shutting down of at least 110 websites. 

Authorities launched a thorough investigation on Sina after receiving several tips from users about the questionable contents.

TagsSina, Sina Penalty, Sina Pornography, Sina Fined, Sina Licenses Revoked