Xinhua News Agency says the penalty might partially ban the web giant's operations.
Sina apologized Thursday evening for ''the suspected problem'' of pornographic content on its literature and video sites. It says in a statement on its website that it feels ''sorry and ashamed'' for lax monitoring and that it moved quickly to rectify the problem.
Xinhua said the state broadcasting authority had decided to revoke its licenses on Internet publication and audio and video dissemination and impose ''a large number of fines.'' Calls to the State Administration of Press, Publication, Radio, Film and Television rang unanswered Thursday evening.