Guangdong Price Bureau has ordered hypermarket operators to stop selling home appliances and mobile phones at below cost, South China Morning Post said. Disciplinary action will be taken against offenders, who face fines ranging between Yn30,000 and Yn300,000. The rule was announced at a meeting attended by about 40 leading domestic and foreign retailers.
The new measure follows reports of concern expressed by the central government over the price-cutting strategy of chain-store operators in Guangdong province. A special unit from the State Development Planning Commission has already been sent to Guangdong to investigate the price war.
