The Chinese authorities keep a close eye on communications
A Chinese media company has fallen victim to a government crackdown on TV advertising of horoscopes and other fortune telling services.
Sina, which provides content for mobile phone handsets, said a ban on broadcast ads for horoscope text messages would severely dent its revenues.
The reason for the ban is unclear but follows a clampdown on pornographic messages and other content last year.
Sina said the ban could reduce its quarterly revenues by nearly 25%.
Unexpected event
Services aimed at mobile phone users such as horoscope messages account for more than half Sina's revenue.
It and other internet firms have benefited from the spectacular growth in the Chinese mobile phone market in recent times.
However, they are having to deal with increased censorship of material by the authorities.
The company told Reuters that the ban, which it said came into effect on Monday, would hit it hard.
"The impacts are severe," co-chief operating officer Hurst Lin told Reuters.
"Completely unexpected policy changes...are expected to take the wind out of these two primary growth drivers."
It warned that the ban could result in a 24% fall in revenues in the first quarter of 2005 and affect sales later in the year.
Shares in the Shanghai-based company, which is listed on the New York Stock Exchange, fell more than 20% after the development emerged.
Sina - which produced revenues of $200m (£108m) in 2004 - said it would develop new content which could be advertised.