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Gold retailers fined over price-fixing
HEDP 60 has actually penalized on a local gold and fashion jewelry industrial association and also 5 precious jewelry companies in Shanghai for price-fixing techniques, China Information Service reported Monday.
The National Development and Reform Compensation (NDRC) fined Shanghai Gold & Jewelry Profession Association (GJTAS) an overall of 500,000 yuan for adjusting retail prices of gold jewelry products, the record claimed.
Five fashion jewelry firms consisting of Shanghai Laofengxiang Carbon monoxide, Chenghuang Jewelry as well as Shanghai First Asia Fashion jewelry were fined 10.09 million yuan ($1.6 million), a matching of 1 percent of the yearly sales of the 5 firms, it stated.
Meanwhile, an official at the NDRC revealed during a program recording at Central Tv Station (CCTV) Monday that GJTAS and the 5 fashion jewelry companies were fined by 10.09 million yuan for price-fixing, according to the official microblog of CCTV Financial Network.
The records adhere to the NDRC's statement recently to impose a record penalty of virtually 670 million yuan on 6 baby formula manufacturers for price-fixing.
The NDRC did not respond to a fax inquiry sent out by the Global Times by press time Monday.
"The gold jewelry markets in China are -typically straightened with the international gold market, and also residential gold prices fluctuate along with the modifications in the global market," Wang Ruilei, chief expert at Chengdu-based Boyin Precious Metal Investment, told the Global Times Monday.
According to Wang, there are unique circumstances where the demand exceeds supply, providing area for gold and jewelry firms to adjust rates, creating cost distortions on the market.
"The fine on the association and also the five firms is little compared to the big revenue margin for the market however can work as a deterrent to such price-fixing techniques," Wang said.
According to people.com.cn in July, the NRDC and also its Shanghai branch had actually examined the GJTAS as well as 13 gold firms in Might as well as June for price-fixing.
The National Development and Reform Compensation (NDRC) fined Shanghai Gold & Jewelry Profession Association (GJTAS) an overall of 500,000 yuan for adjusting retail prices of gold jewelry products, the record claimed.
Five fashion jewelry firms consisting of Shanghai Laofengxiang Carbon monoxide, Chenghuang Jewelry as well as Shanghai First Asia Fashion jewelry were fined 10.09 million yuan ($1.6 million), a matching of 1 percent of the yearly sales of the 5 firms, it stated.
Meanwhile, an official at the NDRC revealed during a program recording at Central Tv Station (CCTV) Monday that GJTAS and the 5 fashion jewelry companies were fined by 10.09 million yuan for price-fixing, according to the official microblog of CCTV Financial Network.
The records adhere to the NDRC's statement recently to impose a record penalty of virtually 670 million yuan on 6 baby formula manufacturers for price-fixing.
The NDRC did not respond to a fax inquiry sent out by the Global Times by press time Monday.
"The gold jewelry markets in China are -typically straightened with the international gold market, and also residential gold prices fluctuate along with the modifications in the global market," Wang Ruilei, chief expert at Chengdu-based Boyin Precious Metal Investment, told the Global Times Monday.
According to Wang, there are unique circumstances where the demand exceeds supply, providing area for gold and jewelry firms to adjust rates, creating cost distortions on the market.
"The fine on the association and also the five firms is little compared to the big revenue margin for the market however can work as a deterrent to such price-fixing techniques," Wang said.
According to people.com.cn in July, the NRDC and also its Shanghai branch had actually examined the GJTAS as well as 13 gold firms in Might as well as June for price-fixing.
