China Investigates Foreign-Car Pricing; Regulator Asks Dealers Association for Data; on the Lookout for Anticompetitive Practices

August 14, 2013, 12:19 a.m. ET

China Investigates Foreign-Car Pricing

Regulator Asks Dealers Association for Data; on the Lookout for Anticompetitive Practices

SHANGHAI—The China Automobile Dealers Association has been asked to compile prices for foreign cars sold locally so any overcharging can be exposed, the organization said Wednesday. The National Development and Reform Commission wants to see whether foreign car makers are manipulating prices or setting minimum retail prices for dealers, said Luo Lei, the association’s deputy secretary-general, noting that those practices are illegal.“The NDRC is checking price information in a variety of industries and the auto sector is just one of the industries,” Mr. Luo said. The association started collecting the information last year, he said.

NDRC officials didn’t immediately respond to a request for comment.

The association data “covers all foreign cars including imported cars and locally built vehicles by joint ventures.” Indigenous brands aren’t covered, Mr. Luo added.

The revelation of the investigation follows official disclosures into the pricing of pharmaceuticals and baby formula. It isn’t clear whether the motor-vehicle inquiry will result in further action.

Last week the NDRC fined six dairy companies 669 million yuan ($109 million) for anticompetitive practices.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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