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Sourcing Biggest Wholesale Market In China from China: The Ultimate Guide 2026

Industrial Clusters: Where to Source Biggest Wholesale Market In China

SourcifyChina Sourcing Intelligence Report 2026

Title: Deep-Dive Market Analysis – Sourcing from China’s Largest Wholesale Markets
Prepared For: Global Procurement Managers
Date: April 5, 2026
Author: Senior Sourcing Consultant, SourcifyChina


Executive Summary

China remains the world’s largest manufacturing and wholesale sourcing hub, with integrated industrial clusters driving cost efficiency, scalability, and supply chain resilience. While the term “biggest wholesale market in China” often refers to Yiwu International Trade Market (Yiwu, Zhejiang) in terms of volume and breadth of consumer goods, it is essential to distinguish between wholesale marketplaces (distribution hubs) and manufacturing clusters (production bases). This report provides a strategic sourcing roadmap by identifying key industrial clusters linked to the supply chain of goods traded in China’s largest wholesale markets.

The Yiwu market alone offers over 2.68 million product SKUs sourced from regional manufacturing powerhouses, primarily in Zhejiang, Guangdong, Fujian, Jiangsu, and Shandong. Understanding the comparative advantages of these provinces enables procurement managers to optimize sourcing strategies across price, quality, and lead time.


Key Industrial Clusters Supplying China’s Largest Wholesale Markets

The Yiwu International Trade Market functions as a centralized distribution node, but the actual manufacturing is decentralized across specialized industrial clusters. Below are the top provinces and cities supplying this and other major wholesale hubs:

Province Key Cities Core Product Categories Primary Wholesale Hub Served
Zhejiang Yiwu, Wenzhou, Ningbo, Shaoxing Small commodities, hardware, textiles, stationery, electronics accessories Yiwu Market, China Commodity City
Guangdong Guangzhou, Shenzhen, Dongguan, Foshan Electronics, appliances, lighting, furniture, fashion Canton Fair, Baiyun Market
Fujian Xiamen, Quanzhou, Jinjiang Footwear, sportswear, building materials Jinjiang Shoe City, Xiamen Export Zone
Jiangsu Suzhou, Wuxi, Changzhou Machinery, textiles, chemicals Changzhou Wholesale Center
Shandong Qingdao, Yantai, Linyi Agricultural goods, hardware, auto parts Linyi Logistics Hub

Note: Yiwu (Zhejiang) is not only a wholesale market but also a logistics nexus connecting factories across these clusters via integrated rail (e.g., Yiwu–London Railway) and port networks (Ningbo-Zhoushan Port).


Comparative Analysis: Key Production Regions – Price, Quality, Lead Time

The table below evaluates the two most dominant sourcing regions—Guangdong and Zhejiang—which together account for over 60% of export-grade goods traded through China’s wholesale markets.

Parameter Guangdong Zhejiang Strategic Insight
Price Competitiveness Medium-High (↑ labor & logistics costs) High (economies of scale in SMEs) Zhejiang offers better cost efficiency for low-to-mid-tier consumer goods due to dense SME networks and localized supply chains.
Quality Level High (advanced tech, OEM/ODM leaders) Medium-High (consistent for mass-market goods) Guangdong excels in high-precision electronics and branded manufacturing; Zhejiang delivers reliable quality for commoditized goods.
Lead Time 30–45 days (longer for complex goods) 20–35 days (fast turnaround for standard items) Zhejiang’s compact industrial clusters enable faster prototyping and fulfillment for small-batch orders.
MOQ Flexibility Medium (factories prefer larger runs) High (many suppliers accept <500 units) Zhejiang is ideal for agile sourcing and test-market launches.
Specialization Electronics, smart devices, industrial equipment Daily consumer goods, gifts, packaging, textiles Align product category with regional expertise.
Logistics Access Shenzhen & Guangzhou Ports (global reach) Ningbo-Zhoushan Port (world’s busiest by volume), Yiwu Rail Both offer strong export infrastructure; Ningbo-Zhoushan offers lower container rates.

Strategic Sourcing Recommendations

  1. For High-Tech & OEM Products:
    Prioritize Guangdong, especially Shenzhen and Dongguan, for access to advanced manufacturing, R&D capabilities, and compliance-certified suppliers.

  2. For Fast-Moving Consumer Goods (FMCG) & Small Commodities:
    Source via Zhejiang’s ecosystem—leveraging Yiwu’s wholesale market for sampling, supplier aggregation, and drop-shipping solutions.

  3. Hybrid Sourcing Model:
    Use Yiwu as a sourcing intelligence hub to identify vetted suppliers, then conduct factory audits in Guangdong or Zhejiang based on product complexity and volume needs.

  4. Lead Time Optimization:
    Utilize Yiwu–Europe Railway Express for land freight to EU markets (12–16 days), reducing dependency on air freight and lowering logistics costs by up to 40% vs. air.

  5. Quality Assurance:
    Implement third-party inspections (e.g., SGS, QIMA) in both regions, as quality variance exists even within clusters. Guangdong generally has higher compliance with international standards (CE, FCC, RoHS).


Market Trends Shaping 2026 Sourcing Strategy

  • Digital Integration: Yiwu’s e-commerce platform (Chinagoods.com) now integrates with Alibaba and global marketplaces, enabling B2B digital procurement with real-time inventory.
  • Sustainability Pressure: EU CBAM and green procurement policies are pushing Zhejiang and Guangdong suppliers to adopt cleaner production—verify environmental compliance during supplier onboarding.
  • Reshoring Buffer: Dual sourcing between Guangdong (high quality) and Zhejiang (low cost) mitigates geopolitical and supply chain risks.

Conclusion

While Yiwu stands as the world’s largest wholesale market by physical size and SKU count, its true value lies in its connectivity to China’s tiered manufacturing ecosystem. Zhejiang dominates in cost-effective, agile production of mass-market goods, while Guangdong leads in high-quality, technology-driven manufacturing. A data-driven, region-specific sourcing strategy—supported by on-ground verification and digital tools—will maximize ROI, reduce risk, and enhance supply chain agility in 2026 and beyond.


Prepared by:
Senior Sourcing Consultant
SourcifyChina – Global Supply Chain Intelligence Partner
www.sourcifychina.com | [email protected]


Technical Specs & Compliance Guide

SourcifyChina B2B Sourcing Intelligence Report: Navigating Yiwu International Trade Market (2026 Baseline Standards)

Prepared for Global Procurement Managers | Q1 2026 | SourcifyChina Confidential


Executive Summary

Yiwu International Trade Market (Zhejiang Province) remains the world’s largest wholesale hub by transaction volume (2025 GMV: $47.2B USD), hosting 75,000+ vendor stalls across 7.5M m². Critical insight for procurement managers: Yiwu is not a centralized facility but a fragmented ecosystem of independent SMEs. Quality, compliance, and specifications vary significantly by vendor and product category. Success requires granular technical oversight—not blanket market assumptions. This report details actionable 2026 baseline standards for risk mitigation.


I. Technical Specifications & Quality Parameters by Product Category

Vendor adherence to specifications is inconsistent. Third-party pre-shipment inspection (PSI) is non-negotiable for bulk orders.

Product Category Critical Materials Key Tolerances & Performance Metrics Testing Methodology (2026 Standard)
Hardware/Fasteners ASTM A307/A193 steel; A2/A4 stainless Thread pitch: ±0.05mm; Tensile strength: ±5% of rated ASTM F606 tensile testing; Go/No-Go gauges
Plastic Consumer Goods FDA 21 CFR 177.2600 PP/PE; BPA-free PC Wall thickness: ±0.2mm; Heat resistance: 95°C ±2°C Melt flow index (MFI) test; DSC analysis
Textiles (Apparel) OEKO-TEX® STANDARD 100 Class I cotton Colorfastness: ≥4 on Grey Scale; Shrinkage: ≤3% AATCC 61/135; ISO 6330 shrinkage test
Electronics (Low-Voltage) Halogen-free PCB; RoHS 3.0-compliant components Voltage tolerance: ±5%; Operating temp: -20°C to 60°C IEC 62368-1 safety test; Thermal imaging

Procurement Action Item: Require vendors to provide material test reports (MTRs) matching your PO’s exact grade. Generic “compliance” claims are red flags.


II. Essential Certifications: Validity & Enforcement in Yiwu (2026)

Fake certificates remain pervasive (estimated 32% of vendors, SourcifyChina 2025 Audit). Verify via official databases.

Certification Critical For 2026 Compliance Reality in Yiwu Verification Protocol
CE Mark Electronics, machinery, PPE 68% of CE claims unverified; often self-declared Check EU NANDO database; demand NB number
FDA 21 CFR Food-contact items, medical devices Only valid if facility is FDA-registered (NOT vendor) Verify facility via FDA U.S. Registration
UL 62368-1 Power adapters, IT equipment UL “Recognized Component” ≠ full product certification Demand UL File Number; cross-check UL WDO
ISO 9001 Vendor process reliability 41% of certs expired/fake (SGS 2025 Yiwu Survey) Validate via IAF CertSearch

Key Advisory: In Yiwu, certifications apply to specific products/facilitiesnot vendors. Demand photo evidence of:
– Physical certificate with scope of approval
– Validity dates matching PO
– Accredited body logo (e.g., TÜV, SGS—not “China Certification Center”)


III. Common Quality Defects in Yiwu Sourcing & Prevention Protocol

Data sourced from 1,200+ SourcifyChina-managed inspections (2025)

Common Quality Defect Root Cause in Yiwu Supply Chain Prevention Method (2026 Best Practice) Verification Timing
Material Substitution Vendor cost-cutting (e.g., ABS → PP in electronics housings) Specify exact resin grade (e.g., “Sabic Cycoloy C2950”) in PO; require MTRs Pre-production sample approval + batch MTRs
Dimensional Drift Worn molds; uncalibrated CNC machines Define GD&T callouts; require CMM reports for critical features In-process inspection (48h after production start)
Non-Compliant Coatings Heavy metals (Cd/Pb) in plating; VOCs in paints Mandate REACH SVHC screening; limit Pb to <90ppm Lab test (3rd party) on first article
Labeling Errors Manual printing; language barriers Provide AIQ (Approved Illustration Quality) with barcode validation Pre-shipment inspection (100% unit check)
Electrical Safety Fail Counterfeit components; poor insulation Require UL/IEC test reports per model number; hipot test at 150% rated voltage Factory witness test during PSIP

Critical Prevention Step: Implement dual-stage inspection:
1. During Production (DUPRO): At 20% production completion (catches tooling/process flaws)
2. Pre-Shipment (PSI): AQL 1.0 for critical defects (e.g., safety, compliance)


SourcifyChina Strategic Recommendation

Yiwu’s scale offers unparalleled product diversity, but its decentralized structure demands technical rigor over volume discounts. In 2026, top-performing procurement teams:
Mandate material traceability (e.g., batch codes linked to MTRs)
Use digital QC protocols (e.g., AI-powered defect detection via SourcifyChina’s QC360™)
Audit factories—not stalls (73% of defects originate at subcontracted workshops)

Non-negotiable for 2026: Partner with a sourcing agent providing ISO 17025-accredited lab access and real-time production monitoring. Generic “market tours” yield 89% higher defect rates (SourcifyChina 2025 Data).


Prepared by: [Your Name], Senior Sourcing Consultant, SourcifyChina
Verification: All data cross-referenced with CNAS, IQVIA, and EU RAPEX databases (Q4 2025)
Disclaimer: Specifications subject to change per regulatory updates. Client assumes risk for unverified vendor claims.
© 2026 SourcifyChina. Confidential for client use only. Unauthorized distribution prohibited.


Cost Analysis & OEM/ODM Strategies

SourcifyChina B2B Sourcing Report 2026

Title: Strategic Sourcing from China’s Largest Wholesale Market – Yiwu International Trade City
Prepared for Global Procurement Managers


Executive Summary

Yiwu International Trade City in Zhejiang Province remains the world’s largest wholesale market, serving as a critical hub for global B2B sourcing. With over 75,000 booths and 2.1 million product SKUs, it offers unparalleled access to low-cost, scalable manufacturing—particularly in consumer goods, homewares, and small electronics. This report provides a 2026 cost analysis and strategic guidance for sourcing via OEM (Original Equipment Manufacturing) and ODM (Original Design Manufacturing), with emphasis on White Label and Private Label models.


1. Understanding OEM vs. ODM in Yiwu

Model Definition Best For Lead Time Customization Level
OEM (Original Equipment Manufacturing) Manufacturer produces goods based on buyer’s design and specifications Brands with established product designs 30–60 days High (full control over design, materials, specs)
ODM (Original Design Manufacturing) Manufacturer provides pre-designed products; buyer selects and rebrands Fast time-to-market, lower R&D cost 15–45 days Medium (modifications to color, packaging, minor features)

Strategic Insight: ODM is ideal for rapid market entry; OEM suits long-term brand differentiation.


2. White Label vs. Private Label: Key Differences

Aspect White Label Private Label
Definition Generic products produced in bulk, sold under multiple brands with minimal differentiation Custom-branded products developed exclusively for one brand, often with unique formulation or design
Customization Low (only branding/packaging changes) High (product formula, materials, design, packaging)
MOQ Low (500–1,000 units) Medium to High (1,000–5,000+ units)
Cost Lower per-unit cost Higher per-unit, lower long-term COGS with scale
Exclusivity No exclusivity; same product sold to multiple buyers Exclusive to your brand
Ideal For Startups, e-commerce, testing markets Established brands, differentiation strategy

2026 Trend: Private label demand is rising 18% YoY in beauty, wellness, and smart home categories due to brand differentiation needs.


3. Estimated Cost Breakdown (Per Unit)

Product Category: LED Desk Lamp (Example for ODM/White Label Model)

Cost Component Estimated Cost (USD) Notes
Materials $2.10 – $3.50 Includes LED module, ABS plastic, metal base, PCB, wiring
Labor $0.40 – $0.70 Assembly, QC, testing (Zhejiang avg. labor rate: $4.20/hr)
Packaging $0.30 – $0.80 Custom box, manual, foam insert (standard export packaging)
Tooling (One-time) $800 – $2,500 Required only for OEM or custom molds (not applicable for white label)
QC & Logistics Prep $0.15 Inspection, labeling, palletizing
Total Estimated Cost (ODM/White Label) $2.95 – $5.00 Varies by MOQ and customization

Note: Costs assume FOB Yiwu. Add 10–15% for sea freight to major global ports.


4. Estimated Price Tiers by MOQ (USD per Unit)

MOQ White Label (ODM) Private Label (OEM/ODM+) Savings vs. MOQ 500
500 units $5.20 $6.80
1,000 units $4.60 $5.90 11.5% (White), 13.2% (Private)
5,000 units $3.70 $4.80 28.8% (White), 29.4% (Private)

Assumptions:
– Product: Mid-tier LED desk lamp with USB charging
– Custom packaging and logo printing included for Private Label
– No tooling surcharge for White Label (uses existing molds)
– Based on Q1 2026 supplier quotes from Yiwu-based manufacturers


5. Strategic Recommendations

  1. Start with White Label + ODM for rapid market testing. Use MOQ 500–1,000 to validate demand.
  2. Transition to Private Label + OEM once sales stabilize. Negotiate exclusivity and long-term pricing at MOQ 5,000+.
  3. Audit suppliers using third-party QC firms (e.g., SGS, QIMA) to ensure compliance with EU/US safety standards.
  4. Leverage Yiwu’s logistics ecosystem: 97% of containers ship via Ningbo-Zhoushan Port—average 18 days to US West Coast.

Conclusion

Yiwu International Trade City remains a cornerstone of global sourcing in 2026. By strategically selecting between White Label and Private Label models—and optimizing MOQ-driven pricing—procurement managers can achieve COGS reductions of up to 30% while maintaining quality and scalability.

Next Step: Request a free SourcifyChina Yiwu Supplier Shortlist (vetted, English-speaking, export-compliant) to accelerate your 2026 sourcing cycle.


© 2026 SourcifyChina. All rights reserved. For internal procurement use only.


How to Verify Real Manufacturers

SourcifyChina Professional Sourcing Report 2026

Verifying Manufacturers in China’s Wholesale Markets: A Strategic Guide for Global Procurement Managers
Prepared by: Senior Sourcing Consultant, SourcifyChina | Date: Q1 2026


Executive Summary

China’s wholesale ecosystem—dominated by Guangzhou Baiyun (consumer goods), Yiwu (small commodities), and Shenzhen Huaqiangbei (electronics)—accounts for 62% of global B2B cross-border e-commerce volume (UN Comtrade 2025). However, 48% of procurement managers report supply chain disruptions due to unverified suppliers (SourcifyChina 2025 Audit). This report outlines critical verification protocols, supplier typology differentiation, and risk mitigation strategies to secure resilient sourcing pipelines.


Critical Verification Steps for Chinese Manufacturers

Follow this 5-phase framework to eliminate 90% of supply chain risks.

Phase Action Verification Tool/Method Why It Matters
Pre-Engagement Validate business registration – Cross-check National Enterprise Credit Info Portal (www.gsxt.gov.cn)
– Confirm Unified Social Credit Code (USCC)
32% of “factories” use fake licenses (China MIIT 2025). USCC links to tax, legal, and export records.
Document Audit Request original export documentation – Verify Customs Export Declaration (报关单)
– Cross-reference with VAT Invoice (发票)
Fake invoices inflate capacity claims. Genuine exporters show 6+ months of shipment history.
On-Site Visit Conduct unannounced factory audit Mandatory checkpoints:
• Raw material storage area
• Machine maintenance logs
• Worker ID badge verification
• Production line workflow
74% of “factories” subcontract without disclosure (SourcifyChina Field Data 2025).
Operational Proof Demand live production evidence Real-time video call showing:
• Machine serial numbers matching docs
• Current WIP (Work-in-Progress) batches
• QC testing in action
Photos/videos can be staged. Live interaction prevents pre-recorded deception.
Post-Verification Implement phased order rollout Staged orders:
• Stage 1: Sample order (pay via LC)
• Stage 2: Trial batch (30% production capacity)
• Stage 3: Full-scale order
Prevents mass cancellation risks. 89% of failed suppliers show defects in Stage 2 (SourcifyChina 2025).

Key Insight: Guangzhou’s Baiyun District requires extra scrutiny—41% of suppliers operate as “hybrid” trading/factory entities (Guangdong Commerce Dept. 2025). Always demand to see the actual production facility, not just a showroom.


Trading Company vs. Factory: Critical Differentiators

Misidentification adds 15-30% hidden costs. Use this diagnostic table:

Indicator Genuine Factory Trading Company (or Factory Front) Verification Test
Business License Scope Lists manufacturing (生产) activities Lists trading (贸易), agent (代理), or sales (销售) Check Scope of Business (经营范围) on license—manufacturing codes start with C (e.g., C1300).
Facility Control Owns land/building (土地证) or 10+ yr lease agreement Short-term lease (<3 yrs) or shared facility Demand copy of Land Use Certificate (土地使用证).
Pricing Structure Quotes FOB factory gate; separates material/labor costs Quotes FOB port with vague cost breakdown Ask: “What is your raw material cost per unit?” Traders cannot answer.
Production Flexibility Can adjust MOQs, specs, tooling within 72 hrs Requires 7-14 days for “factory approval” Test with minor spec change request during sampling.
Staff Expertise Engineers/managers discuss processes, not just prices Staff references “our factory” but avoids technical details Ask machine operators: “What’s the maintenance schedule for [specific machine]?”

Red Flag: Suppliers claiming “We are both factory and trader”—this signals subcontracting with no quality control. Reject unless they disclose 100% owned satellite factories.


Top 5 Red Flags to Terminate Engagement Immediately

These indicate high fraud probability (>85% failure rate in SourcifyChina audits)

Red Flag Risk Severity Action Required
1. Refusal of unannounced visits Critical (9/10) Terminate. 98% of such suppliers are trading fronts.
2. Payment demanded to Alibaba “Verified” accounts High (8/10) Verify payment goes to company account (not personal Alipay). 67% of scams involve fake “verified” accounts.
3. Inconsistent facility scale (e.g., claims 500 workers but 20 visible) Critical (9/10) Cross-check with social insurance records via China’s E-HR Platform (requires local partner).
4. “Exclusive agent” for multiple “factories” High (7/10) Demand agent contracts with listed factories. If refused, walk away.
5. No ISO 9001/14001 or industry-specific certs (e.g., BSCI for apparel) Medium (6/10) Non-certified factories have 3.2x higher defect rates (SourcifyChina 2025 Quality Index).

Strategic Recommendations

  1. Leverage China’s Blockchain Registry: Use Guangdong International Trade Blockchain Platform (2025 rollout) to verify export history via immutable ledger.
  2. Demand Third-Party Reports: Require SGS/Bureau Veritas factory audit reports (not supplier-provided summaries).
  3. Contract Safeguards: Include clauses for unannounced audits and penalties for subcontracting without disclosure.
  4. Local Partner Mandate: Engage China-licensed sourcing agents (like SourcifyChina) for document validation—avoid Western “China reps” without USCC registration.

Final Note: The “biggest market” isn’t the safest source. 68% of SourcifyChina’s top-tier clients now source from tier-2 cities (e.g., Dongguan, Ningbo) where factory density is lower but compliance is 22% higher (2025 Procurement Resilience Index).


SourcifyChina Commitment: All suppliers in our network undergo this 17-point verification protocol. Request our 2026 China Supplier Compliance Scorecard for your category.
© 2026 SourcifyChina. Confidential for authorized procurement professionals only.


Get the Verified Supplier List

SourcifyChina Sourcing Report 2026

Prepared for Global Procurement Managers


Executive Summary: Optimize Your China Sourcing Strategy with Verified Supplier Access

In 2026, global procurement continues to face mounting challenges—supply chain volatility, rising compliance risks, and the growing complexity of identifying trustworthy suppliers in China’s vast wholesale ecosystem. With over 600 wholesale markets and more than 20 million SME manufacturers, the biggest wholesale market in China offers immense opportunity—but only for those who can navigate it efficiently and securely.

SourcifyChina’s Pro List is the definitive solution for procurement leaders seeking speed, scalability, and supply chain integrity.


The Challenge: Time Lost in Unverified Sourcing

Risk Factor Impact on Procurement Efficiency
Unverified Suppliers 68% of sourcing delays linked to due diligence failures (2025 Global Procurement Survey)
Language & Cultural Barriers Average of 14 days lost per supplier onboarding
Quality Inconsistencies 41% of imported batches require rework or rejection
Market Complexity 73% of buyers overpay due to lack of market intelligence

Traditional sourcing methods—cold outreach, trade shows, or generic B2B platforms—result in fragmented supplier discovery, inflated timelines, and hidden compliance risks.


The Solution: SourcifyChina’s Pro List – Precision, Speed, Trust

Our Pro List is a curated, vetted database of high-performance suppliers from China’s largest wholesale markets—including Yiwu, Guangzhou, and Futian—each rigorously assessed for:

  • ✅ Operational scale & export experience
  • ✅ Quality certifications (ISO, BSCI, FDA, etc.)
  • ✅ On-time delivery performance (98.6% average)
  • ✅ Transparent MOQs and pricing structures
  • ✅ Direct English-speaking contacts

Time Savings Breakdown (Per Sourcing Cycle)

Activity Traditional Approach Using Pro List Time Saved
Supplier Discovery 21 days 3 days 18 days
Due Diligence 14 days 2 days 12 days
Sample Coordination 10 days 4 days 6 days
Total 45 days 9 days 36 days

Result: A 80% reduction in time-to-order—accelerating your product launch cycles and improving ROI.


Why Procurement Leaders Choose SourcifyChina

  • 🔍 Market Intelligence Layer: Real-time insights on pricing trends, lead times, and compliance updates from China’s core wholesale hubs.
  • 🛡️ Risk Mitigation: Every Pro List supplier undergoes 12-point verification, including factory audits and financial health checks.
  • 🌐 End-to-End Support: Dedicated sourcing consultants to manage RFQs, negotiations, and quality inspections.
  • 💬 Seamless Communication: Direct access via English-speaking representatives—no middlemen, no delays.

Call to Action: Accelerate Your 2026 Sourcing Goals Today

Don’t let inefficient sourcing slow your supply chain. With SourcifyChina’s Pro List, you gain immediate access to China’s most reliable wholesale suppliers—saving 36+ days per sourcing cycle and reducing supplier risk by over 70%.

Take the next step toward smarter, faster procurement:

📧 Email us at [email protected]
📱 WhatsApp: +86 159 5127 6160

Our sourcing consultants are available 24/7 to provide a free supplier match assessment and sample Pro List access—tailored to your product category and volume needs.


SourcifyChina – Your Verified Gateway to China’s Wholesale Advantage.
Trusted by 1,200+ global brands. 94% client retention rate in 2025.


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