BEIJING - The Economic Observer, a newspaper based in East China's Shandong province, has been punished for running several inaccurate reports, the General Administration of Press and Publication said in a statement Wednesday.

The punishment was handed down by the local press and publication administration in Shandong, the statement said.

An investigation by authorities found that a July 18 report in the newspaper about a Ministry of Railways reform scheme that may involve the establishment of three corporations was untrue.

The reporter did not interview the subjects involved and wrote the story based on information available online and individual experts' opinions and suggestions, the statement said.

Moreover, several other reports this year, including one about a Samsung Electronics project in the city of Xi'an of northwest China's Shaanxi Province, also proved unfounded, the statement said.

The statement said these false reports have resulted in negative social impacts.

The newspaper office has been warned and fined, and the administration has revoked the press card of the journalist responsible for the erroneous story and warned journalists that they are responsible for reports lacking credible sources, the statement said.

The administration also told the newspaper office to immediately cease other practices in violation of the administration's rules.