Beijing Xiushui Haosen Clothing Market is fighting a court ruling against it connected to the sale of fake branded goods, the Financial Times reported.

The market has been ordered to pay out compensation to luxury clothing companies Burberry, Chanel, Gucci, LVMH and Prada for allowing pirated garments to be sold by market vendors.

However, Xiushui said it had taken action against the sale of fakes by banning vendors who sold them, compiling lists of banned brands and carrying out anti-piracy training.

Xiushui chairman's assistant Wu Weishuang was quoted as saying the judgement would be "a calamity" for China's markets if it were upheld.

Wu added that market vendors frequently sell pirated products in secret and that landlords were not in a position to perform stock searches.