Shanghai license plate auction sets new records

Shanghai (CNS) -- Shanghai's license plate auction set records in May, with the average price at 64,367 yuan (about US$10,171.79) and the lowest at 64,000 yuan.

Despite increasing the number of issued plates to 9,300, or 800 more than April, market demand was unrelieved.

Bidders expressed worry that plate prices might soon exceed 100,000 yuan.

The city authority remains negative about price hikes and is concerned that the city's traffic will only get worse if no measures are taken, said Sun Jianping, director of the Shanghai Transportation and Harbor Administration.

The second-hand market is also heated. For now, most offers are between 65,000 and 66,000 yuan, with some reaching as high as 67,000. Banks are even promoting license plate loans.

Market insiders say a downturn is almost impossible in the short term because of the city's current supply and demand.