"We are happy to hear the news," said a spokesman from eastday.com, a popular news portal in Shanghai. "It helps regulate current operations of the websites."

Regulations on Internet content service, issued last September by the State Council, stipulate that websites providing news, and information on education and health care must get approval from State authorities before January 31.

Unlicensed websites will be penalized or shut down.

Each licensed operator is required to post a banner of certification on its homepage, displaying the license number and detailed information on the company.

The license is valid for one year.