Beijing's New Otani Chang Fu Gong hotel has been investigated by city inspectors who have taken action against the hotel for its poor quality mooncakes.

A municipal taskforce investigated the Japanese-owned Hotel New Otani Chang Fu Gong and took undisclosed punitive action over the RMB368 wine and mooncake gift boxes produced and sold at the hotel.

The Mid-Autumn Festival, a Chinese holiday that took place last weekend, is the time of year when friends and family exchange mooncakes.

Local papers said one mooncake box contained a cake that had been opened, with a piece of hair protruding from the cake.