Guangzhou license plate auction sees huge gap in bids

Twelve bidders purchased vehicle license plates at the initial price of 10,000 yuan ($1,600) during a public auction in Guangzhou on Wednesday but other plates fetched far more.

The auction drew 3,861 attendees with 4,048 plates on offer going for an average price of 30,802 yuan.

The city raised more than 113 million yuan from the auction. It raised 101 million yuan in August and 77.94 million yuan in July.

Since July 2012, Guangzhou, capital of Guangdong province, has limited its car registration to help ease traffic congestion.

According to the traffic police, Guangzhou - which has a population of more than 16 million - had more than 2.4 million vehicles registered by the end of last month.

The city holds monthly lotteries and public auctions for license plates.

Guangzhou is the fourth Chinese city to limits car registration. The other three are Shanghai, Beijing and Guiyang, capital of Guizhou province.