Hong Kong ( CNN ) -- China has banned advertisements for luxury products on its official state radio and television channels . The move is an apparent attempt to douse growing social frustration in the wealth gap between the country 's rich and poor -- and to stop corruption conducted through luxury gift-giving . Such ads had `` publicized incorrect values and helped create a bad social ethos , '' said China 's television watchdog , the State Administration of Radio , Film and Television ( SARFT ) , reported Xinhua , the country 's official state-run news agency . The ban includes commercials for high-end watches , gold coins and rare stamps and comes on the eve of China 's Lunar New Year celebrations that begin this weekend . The holiday , compared to Christmas in the West , is a time of intense gift- and money-giving . Share prices of Burberry , LVMH , Richemont and Chow Tai Fook , the world 's largest jewelry marker , all fell after Beijing announced the ban . In 2012 , China surpassed Japan as the world 's largest luxury market . By 2015 , McKinsey & Co. had predicted China 's luxury market would account for one-fifth of global sales with a value of $ 27 billion . Beijing 's luxury ad ban may now dampen growth in the market . China 's latest move follows a series of recent statements and decisions from top leaders exhorting Communist party officials to lead a low-key lifestyle to avoid imagery of a leadership out of touch with many of its citizens . Last November , as Chinese President Hu Jintao prepared to begin the power transition to his successor Xi Jinping , Hu cautioned that failing to stop corruption could result in the demise of the Communist party . In December , new party rules announced that ornate flower displays , waving schoolchildren welcoming visiting dignitaries and large groups of state officials traveling abroad were prohibited or frowned upon . China 's Central Military Commission also banned luxury banquets for military forces and alcohol at official functions . In January , China 's National Bureau of Statistics released an official Gini coefficient reading for the first time in ten years . The figure that measures a country 's rich-poor divide was 0.474 . A separate survey from December 2012 by China 's Southwestern University revealed the country 's 2010 Gini coefficient was 0.61 . A number over 0.40 indicates potential for social unrest , according to the United Nations .
China 's luxury ad ban targets country 's widening wealth gap . Luxury ads ' publicized incorrect information ' , says China 's tv watchdog . Share prices of luxury brands fell after China collapsed . Ad ban latest in terms of decisions on low - income lifestyle for Communist members .