The chief editor of a Chinese financial website has been arrested on suspicion of blackmail, according to People’s Daily.
Investigators in Shanghai said the editor, surnamed Liu, his deputy and several staffers colluded with two public relations agencies to extort money from dozens of companies by threatening to publish negative news about them.
The two PR companies – Roya Investment Services Shanghai and Shenzhen Nukirin Investment Services — allegedly helped 21cbh.com select potential targets, mostly publicly listed companies.
Other targets were listing candidates in the process of restructuring, the report said.
Also, the suspects offered to publish positive news about certain companies for a fee.
The companies were not named but dozens are from Beijing, Shanghai and other key cities in Guangdong province.
The website is the online service of Chinese newspaper group 21st Century Business Herald.
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