Beijing's industrial and commercial authorities have suspended the license of a company claiming to sell land on the moon for engagement in speculation and profiteering.

The Beijing Lunar Village Aeronautics Science and Technology Co Ltd with domestic financing was registered on September 5 but has now stopped operations, said a source from the Chaoyang District Branch of Beijing Municipal Administration for Industry and Commerce over the weekend.

Calling itself the "Lunar Embassy in China," the firm claimed customers could purchase an acre on the moon for 298 yuan (US$36.8) through them.

Li Jie, chief executive officer of the company, was quoted in earlier reports as saying the firm issued customers a certificate that ensured property ownership including rights to use the land and minerals up to three kilometers underground.

A Chaoyang branch official said that according to state regulations, all activities in violation of state laws and regulations and that disturb social and economic order are regarded to involve engagement in speculation and profiteering.

The official said further investigation into the case would continue.

The Chaoyang branch together with local police seized invoices, permits of ownership of land on the moon, documents, employee files and more than 10,000 yuan (US$1,234.6) from the business.

Li said that 34 clients had bought 49 acres in the first three days after his company became operational on October 19 in deals involving more than 14,000 yuan (US$1,728.4).

He said he would cooperate with the authorities' investigation and expected to reopen his business when permitted.

The Chaoyang branch found that sale of land on the moon was not listed as the company's business when it was registered, according to early reports in the Beijing News.

An earlier report said Li was nominated China agent by Dennis Hope, a US entrepreneur who founded the first Lunar Embassy in 1980.

(Xinhua News Agency November 8, 2005)