RAPAPORT... Chow Tai Fook responded to allegations made in the Chinese media yesterday claiming that the company is involved in gold price fixing.
"Chow Tai Fook feels that these allegations would adversely affect its reputation and would like to clarify that it is not involved in any collective price fixing activities," according to a statement that was issued by the Hong Kong-based jewelry company.
Chow Tai Fook noted that it uses its own gold pricing mechanism and has never been involved in any price fixing activities. Furthermore, the group's gold product prices are set based on numerous factors, including the cost of raw materials and various operating costs such as design, craftsmanship and services. The group also explained that it uses the international gold price as a major reference.
This is the second time the company has been accused of price fixing activities, with the first accusation made in July 2013, when a media report claimed that Chow Tai Fook was being investigated in a probe involving price manipulation by a number of jewelry retailers in Shanghai.
The company stressed that it has always complied with all relevant laws and regulations in Mainland China and will continue to do so when conducting business in the country.
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