The site provided nearly 80,000 gay fiction pieces, including 1,500 with "illegal porn" descriptions, to about 600,000 registered members.
Some works of fiction were open only to some readers who paid processing fees via cellphone.
Police in Zhengzhou, capital of Henan Province, arrested the 28-year-old site owner, surnamed Wang, and said most works of fictions were written by women in their 20s in Shanghai, Guangzhou, Chongqing and other cities.