The Chinese government yesterday promulgated a revised decree to strike the
activities of driving up prices through hoarding or cheating.
The revision was made on the basis of regulations passed in 1999 and amended
in February 2006 by the State Council.
The new decree, effective as of yesterday, raises the maximum fine to one
million yuan (US$137,000), which almost triples the sum in the old regulations,
for those who manipulate market prices and ignore the prices advised by the
government under emergencies.
Commercial associations which deliberately spread rumors on price information
can be fined at a maximum of 500,000 yuan. Those who severely violate the decree
may have their legal certificates revoked.
The State Council and local governments can set profit ratios or price
ceilings for key items of goods and services when prices rise too sharp,
according to the decree.