context: Surges in prices of commodities like coal this year prompted the formulation of a set of new rules on price index management. It is not yet clear whether the rules apply to foreign price index formulators who are accused of releasing misleading price quotes.
NDRC (National Development and Reform Commission) released on 17 Jun 2021 'Management measures for the price indices of major commodities and services (trial)', specifying
- price index publishing entities are required to disclose in detail the indices preparation plan, price collection and other information, and regularly publish the results of self-assessment
- price index publishing entities are barred from manipulating price indices, participating in transactions of goods and services related to the products they publish information on, or engaging in improper trading with related entities
- entities that publish false price indices, manipulate price indices, and use price indices to reach monopoly agreements will be summoned for talks, asked to rectify improper actions or included in the list of untrustworthy enterprises, depending on the severity of their infringements
The Measures will be effective 1 Aug 2021 for three years, and are applicable to activities related to commodity price index formulation in China. The pricing of commodities such as iron ore and coal is highly dependent on price indices. The actual impacts of the new measures are not entirely clear, says Feng Yu 冯雨 CCTD.com (China Coal Transportation and Distribution Association) director. Spot prices for coal are evaluated on the basis of indices published by institutions like China Coal Transportation and Distribution Association, China Electricity Council and Fenwei Energy.