Police in Shenzhen, Guangdong province, on Wednesday announced the arrest of a gang that used violence to monopolize markets in the bustling Luohu district.

Eighteen suspects, including the gang's alleged leader, a 38-year-old identified as Li, have been detained, while two more remain at large, said Pei Chundong, director of criminal investigation for Luohu's public security bureau.

"The gang has been active in Taibai Road, Luohu, for many years," Pei said at a news conference.

Police detained Li and nine other suspects in an operation in March, and detained eight more in May, Pei said. "Many knives, steel pipes and other weapons were seized when police arrested the gang," he said.

"Residents, particularly business representatives, cheered after news of the police action, as it led to great improvement in social order."

A resident who did not want to be named said he used to frequently see gang members fighting with business owners in restaurants and entertainment venues at night.

"Now I have not seen any fighting for a month," he said.

A sauna owner who gave his name only as Chen said businesses had previously been affected by the poor social order in Taibai Road.

Gangsters frequently visited his sauna house to threaten his staff and drive away clients, he said.

"Some of my masseuses had to resign and left after they were frightened by the gangsters who made trouble every week."

Pei said the gang was investigated in relation to 12 criminal matters, including forcing victims to trade, intentional injuries, illegally running casinos and intimidation.

"By using violence to monopolize the beer market alone, the gang was found to have illegally earned more than 160,000 yuan ($25,000)," he said.

"The gang forced barbeque restaurants, stores and bars to purchase beer only from designated shops operated by the gang, and the price of a bottle of beer was several yuan higher than the market price."

Meanwhile, police have also detained Fang Mouchun, deputy director of Buxin Housing Management Center in Luohu.

He is accused of acting as a protective umbrella for the gang and was taken into custody on Friday.

zhengcaixiong@chinadaily.com.cn