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China auctioned totaled 4.34 million tons of its grain reserves since November in a bid to keep down rising prices on the domestic market.

China is auctioning its wheat reserves for the sixth time since November in Zhengzhou, the capital of Central China's Henan Province, said sources with the China Grain reserves Corporation (CGRC).

The CGRC said it purchased 40.7 million tons from June to September to fill state reserves and to reinforce the country's ability to regulate wheat prices.

A CGRC spokesman said around 500 to 600 grain processing firms joined the auction and the supply and demand generally remained balanced.

The move came after grain prices rose in November. Figures with the National Bureau of Statistics show that the price of grain products rose 4.7 percent in November.

The government will intervene in the market periodically by selling grain reserves with the Chinese Lunar New Year approaching when more flour is consumed.

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