Shanghai license plate prices drop sharply

The monthly car license plate auction in Shanghai has posted an unexpected sharp decline in bidding prices.

The lowest bidding price fell to 27,000 yuan and the average bidding price was just over 29 thousand yuan. Both are down by nearly ten thousand yuan from August. This month, Shanghai put eight thousand, five hundred plates on auction, 5 hundred more than August. Analysts expected bidding prices would continue to rise after it surge last month. But less bidders joined the auction and offered lower prices.

Shanghai is the first and only city in China to auction off a limited number of private license plates each month. The auctions hope to limit the volume of cars on its roads.