Hainan market regulators warn businesses over speculation and hoarding, fines could reach $740,000
Staff members work in an inflatable COVID-19 testing lab in Sanya, south China's Hainan Province, Aug. 7, 2022. Prevention and control measures have been taken in Sanya to fight against the new resurgence of COVID-19 in the city. Photo: Xinhua
Market regulators in South China's tropical Hainan Province, which is currently dealing with a COVID outbreak, warned businesses not to engage in speculation over the prices of food, vegetables or personal protective equipment such as masks. Offenders could be fined as much as 5 million yuan ($740,000).
Regulators warned market participants not to take advantage of the recent outbreak by spreading information about a price hike, hoarding, or other forms of speculation that disrupt market order, in a sternly worded notice released late Monday by the local administration for market regulation.
Bundle sales and fake promotions that mislead and confuse consumers about prices are also banned.
Those who fail to observe the Price Law, relevant regulations and the ban on price fraud will be punished, the notice said.
Market entities that speculate and hoard will face fines of up to 3 million yuan and those that engage in market manipulation will face fines of up to 5 million yuan. Violations that result in serious consequences could lead to licenses being revoked. Illegal gains from such activities will be confiscated.
Goods are to be sold exactly as the price tag indicates and merchants that do not sell goods according to the price tags could face a fine of 5,000 yuan.
The market regulator also encouraged the public to report violations.
The rapidly spreading Omicron BA5.1.3 variant that was first reported in Sanya, Hainan has triggered multiple cities in the province to impose what officials call "static management." There had been 1,507 COVID-19 cases as of Monday and tourists in their thousands were stranded on the island.
Similar punishment were also announced by market regulators in Northwest China's Shaanxi Province and Central China's Henan Province in the past two years.
In February 2020, the State Administration of Market Regulation provided guidance of severe punishment, including fines that could amount to 5 million yuan, to unruly market participants at times of emergency during the COVID epidemic.
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