Authorities began to conduct an investigation into online allegations of surrogacy activities involving a biotechnology company and an IVF consulting company in Qingdao, East China's Shandong Province, the joint investigation team in Qingdao announced on Wednesday.

The legal representative of the two companies, surnamed Cong, was arrested for organizing illegal human-assisted reproductive activities, the announcement said.

Additionally, five other medical professionals, including two doctors from Qingdao Women and Children's Hospital, and two doctors from Qingdao Lianchi Maternal Hospital Co,. Ltd., as well as a nurse surnamed Ning from Qingdao Women and Infants Hospital (Tong An) were found to have varying levels of involvement in these illegal activities. They face penalties according to the severity of their actions.

Relevant institutions and individuals have been held accountable in accordance with applicable regulations and disciplinary measures, according to local authorities.

Henan TV earlier reported that its reporters visited what was described as the "largest underground surrogacy laboratory in northern China" and conducted secret inquiries. A man surnamed Cong claimed in the footage that his company was providing surrogacy services. Cong said one child is priced at 750,000 yuan ($105,000), with an extra 200,000 yuan needed if the parent wants to select the child' s gender.

Surrogacy is illegal in China.