Shanghai gold price manipulation under probe

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 to manipulate and monopolize the market, according to people.com.cn.

The case is still under investigation.