(Yicai) June 16 -- Factories in China making counterfeit Labubu toys have started shutting and clearing inventory to avoid scrutiny after domestic regulators stepped up efforts to curb the production of imitation products.

Last week, the head of a counterfeit goods plant in Dongguan told Yicai posing as a buyer that there were too many customers and the factory was overwhelmed, indicating that new buyers had to wait.

The same person recently contacted Yicai to ask if there was still demand for fake Labubu dolls priced at only CNY38 (USD5.29) apiece. The person also posted on WeChat that the factory had halted production and was clearing inventory, offering the remaining stock at even lower prices.

The head of another plant making fake Labubus in Dongguan also announced on WeChat that production had ceased. Others in charge of such factories deleted all videos of counterfeit products from their social media accounts, even if it is difficult to distinguish fake from genuine toys from the videos.

The heads of the two Dongguan plants refused to tell Yicai why they halted production. However, the moves were likely related to the recent increase in efforts by market watchdogs to crack down on counterfeit goods.

All fake Labubus in Yiwu, known as the world's capital of small commodities, were removed overnight. Those making and selling such toys must have proper licenses, according to relevant staff from the local market supervision administration.

Labubu dolls, produced by Pop Mart International Group, have become a global sensation, ranking as the Beijing-based firm's top revenue-making intellectual property last year. The toys' prices on second-hand sites have surged, while many counterfeit products have flooded the market.

Editors: Tang Shihua, Martin Kadiev