Ministry of Finance, Ministry of Commerce and Ministry of Industry and Information Technology jointly issued an announcement yesterday indicating their intention to crack down

on rorts in relation to the policy of offering subsidies for home appliances sold in rural areas introduced as part of stimulus measures announced in late 2008. The new

regulations require provincial-level finance bureaux to conduct inspections and spot checks to make sure that retailers are not falsely claiming subsidies. Economic data for

April revealed a decline in the number of home appliances sold as part of the "home appliances to the countryside" program, with 3.29 million units sold, down 31% on the number sold in April last year. In monetary terms, 8.72 billion yuan worth of appliances were sold as part of the program, down 12% on the value of goods sold over the same period in 2010. This is the first drop in monthly sales by either voloume or value since the program was first introduced in Dec 2008. In a note from Xiangcai Securities, analysts argued that the drop in sales was not related to weakening demand but rather stricter supervision and regulation by government authorities.

Source
The Beijing News

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