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China to Severely Punish Profiteering Price Hikes
Actions giving rise to irrational price increases will be punished severely by price supervisory departments, according to an announcement issued by the State Development and Reform Commission on Friday.

The announcement lists the following illegal actions as punishable acts:

-- The creation and dissemination of rumors about price increases;

-- The sharp increase of prices to increase profits in the absence of clear corresponding changes in costs;

-- Being the first to raise prices in a given region or sector; and,

-- The deliberate hoarding of goods to create shortages and corresponding price increases.

(Xinhua News Agency April 26, 2003)

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