Mystery Shanghai billboard ban irks ad companies

A general view shows the Pudong financial district in Shanghai September 13, 2007.

SHANGHAI (Reuters) - Advertising companies in China's commercial capital Shanghai are confused and angry after city authorities placed a sudden and mysterious ban on billboards, state media reported on Tuesday.

Shanghai authorities last week ordered a halt on the approval and review of outdoor commercial advertising, the China Daily said, leaving local advertisers blind-sided and searching for an explanation.

"I was shocked, to say the least. We usually receive notice from the association two to three months prior to any new policy change," the paper quoted Kelvin Fan, from Shanghai-based Shanghai Bestknown Advertising Co Ltd, as saying.

"But this time the government has not given any reason for the suspension and has not said when it will be lifted," said Fan, whose company had been forced to delay client projects because of the ban.

Advertisers had speculated the move was driven by officials' concern that the billboards would harm Shanghai's image ahead of the Beijing Olympics in August, the paper said. The city will host some soccer qualifiers.

"The authorities might be concerned with the side effects of the outdoor ads, but this does not mean the ban is legally justifiable. It has hindered us from scheduling our projects," the paper quoted Qiu Dongming, director of the outdoor advertising committee of the Shanghai Advertisement Association, as saying.

Authorities in China's capital Beijing last year launched a crackdown on billboards promoting luxury housing, concerned they would fan resentment among less affluent residents.

(Writing by Ian Ransom; Editing by Nick Macfie)