Shanghai's market watchdog has ordered sellers to abide by regulations following recent increases in the price of vegetables.

Vegetable prices are high due to a number of factors, including the low temperatures, the return of COVID-19, supply and demand, and rising consumption ahead of the Lunar New Year, the Shanghai Administration for Market Regulation said on Monday.

The order reiterating pricing regulations aims to stabilize vegetable prices, the administration said.

Vegetable businesses are banned from fabricating and spreading price rise information to disrupt the market, stockpiling products in short supply, manipulating prices, and charging extra, the administration said.

They face fines of up to 5 million yuan (US$77,400) for manipulating prices which lead to a surge in prices, and up to 3 million yuan for price gouging, the administration said.

In serious cases, businesses will have their operating licenses revoked.