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"Local newspaper branches and their staff reporters are not allowed to engage in extortion by threatening to expose inside stories," said a circular issued by The General Administration of Press and Publications (GAPP).

It also bans paid news, forced subscriptions and forced advertising in return for complimentary reports.

Local media branches should lose no time in carrying out the overhaul, dismissing unqualified press personnel and applying for a journalist's certificate for those who are qualified but do not have a certificate yet, GAPP said in the circular.

The press watchdog also ordered subordinate departments to tighten supervision over the operation of media branches in the provinces.

Local GAPP departments have been told to revoke the licenses of media branches which violate the ban or ignore the press watchdog's overhaul orders.

"Local media branches are subject to the local GAPP department's guidance, supervision and administration," GAPP said in the circular, asking its local offices to annually review the performances of media branches.

The circular comes after a series of cases in which local newspaper reporters extorted money in exchange for not reporting bad news or accidents.

Wang Wei, a media professor with the Communication University of China, said it is high time to purify the journalistic profession in China as paid news is prevalent in some parts of the country.

"Journalism is a divine profession, which must not be tarnished by cynicism and greed," Wang told Xinhua, adding that stricter qualifications should be imposed to ensure journalists qualified both professionally and ethically.

GAPP also said government officials cannot be hired as part-time reporters and that all reporters must carry a "journalist certificate" that is issued by GAPP.

The circular said GAPP will revoke reporters' certificates if they violate any of the rules.

In January, Lan Chengzhang, an employee of the Shanxi office of the Beijing-based China Trade News, was beaten to death during his investigation of an unlicensed coal mine in the northern province, by eight thugs hired by the coal mine owner.

Lan and his colleague, who were apparently not fully-fledged journalists, were allegedly trying to extort money from the owner of the illegal coal mine.

Last May, four newspaper staff reporters previously working for local branches of the Beijing-based China Food Quality Newspaper and three other newspapers were arrested for extortion.

The four reporters racketeered institutions or companies after learning about irregularities there. Some media branches were set up without official approval.