China will enhance oversight over monopolistic practices created by industrial organizations, especially in overcapacity sectors, a senior official with the nation's top economic regulator said.

Xu Xinyu, a senior official with the National Development and Reform Commission, said the commission will strengthen oversight of industrial association involved in enterprises' monopolistic practices, at the time when a growing number of industrial association have been found to gain benefits from organizing enterprises to collude, driving up market prices.

The official's remarks came after the commission issued fines earlier this month on Shanxi Electric Power Association for asking local power companies to fix prices, infringing consumer rights.

Twenty-three local power companies caught colluding on price of power supply were fined 72.88 million yuan ($10.9 million), and the association was fined 500,000 yuan, according to the commission.

While higher market prices provide a temporary respite with sluggish demand pressures, entities in overcapacity sectors, both enterprises and associations, have no excuse to violate the anti-monopoly law, according to Xu.

"The government will strive to maintain a level playing field, treating all sectors equal," he said.

Deng Zhisong, a ?senior partner at Dentons Beijing Office, said the penalties reflected the government's determination to improve market fairness.

He said fines would warn associations in other sectors, at the time when many lack legal awareness.