China warns against monopolies, hoarding in photovoltaic industry

(Reuters) -China's industry ministry issued a notice on Wednesday to promote and optimise the development of the country's photovoltaic industry, warning against market monopolies and encouraging development of power and storage projects.

Due to supply and demand mismatches, severe price fluctuations, and hoarding in the supply chain of the photovoltaic industry, there is an "urgent need to deepen industry management," the ministry said.

"Local market supervision departments should strengthen supervision and management... (and) severely crack down on illegal activities in the photovoltaic industry," said the industry ministry, citing price bidding, monopoly practices and the production and sale of fake products as such activities.

The ministry also cautioned against hoarding and reselling materials and resources within the industry, and encouraged relevant enterprises to develop reserves of polysilicon, batteries and other materials to promote peak shaving and the stability of the industrial supply chain.

"Hoarding is strictly prohibited," it said.

(Reporting by Emily Chow and Beijing newsroom; Editing by Kim Coghill)