Shanghai gold price manipulation under probe
Updated: 2013-07-19 16:41
Many jewelry stores in Shanghai, including Shanghai Lao Fengxiang Co Ltd and Yuyuan Tourist Mart, are being investigated by the Bureau of Price Supervision and Anti-Monopoly of the National Development and Reform Commission, as the time-honored brand jewelry stores jointly monopolize the retail price of gold jewelry in Shanghai via a business platform - Shanghai Gold & Jewellery Trade Association (GJTAS), people.com.cn reported.
A number of gold shops have submitted a report to the Bureau of Price Supervision and Anti-Monopoly acknowledging that collusion among their companies on consolidating gold and jewelry price damaged the interests of consumers. These enterprises are undergoing rectification and reform.
The investigation targeted a rule for the price of gold and platinum jewelry in Shanghai established by GJTAS. The group set a "uniform price" guiding its member firms to sell gold jewelry in the market, which violated China's anti-monopoly law.
GJTAS, established in December 1996, now has 226 members, covering over 85 percent of the industry, and its market share is more than 90 percent. The association became a tool used by Shanghai's local gold stores so manipulate and monopolize the market, according to people.com.cn.
The case is still under investigation.