The average successful bid at this month's auction of private car
license plates in Shanghai was significantly lower than prices paid
at last month's sale, a strong indication that many would-be buyers
are waiting to see what effect China's entry into the World Trade
Organization will have on car prices, analysts say.
This month's lowest winning price was 5,500 yuan (US$662), or
two-thirds less than last month's low price, and the second-lowest
successful bid of the year. The average winning price fell 3,383
yuan to 13,593 yuan.
Individuals and privately owned companies in Shanghai must bid for
private license plates before they can buy a car. There is no floor
price for plates as long as they are used on domestically built
automobiles.
"China's WTO entry may curb growth during the peak year-end
car-buying season," said an official with Shanghai International
Commodity Auction Co Ltd, organizer of the monthly sealed-bid
auction.
Analysts noted that a wait-and-see attitude is expected to last
until early next year, as buyers wait an expected fall in car
prices following China's entry into the WTO.
Buyers are also holding off because of rumors the city will provide
free license plates next year, or at least greatly increase the
number of plates for sale, which would reduce the prices. So far,
the city has denied these rumors.
This month was the first time the local government allowed
foreigners with a local residence permit to bid for private plates.
In the past, foreigners had to buy plates at a special sale, and
the number of plates available was very limited.
Three foreign bidders won their licenses at the auction, said one
official, who declined to identify the three.
Just last month, the government decided to allow military personnel
and non-permanent residents of Shanghai to bid for private plates,
which resulted in sharp rises in the number of bidders and bidding
prices.
Ironically, prices at this month's auction may have been low
because winning bids last month were the highest this year, scaring
off many potential bidders, the auction official said.
In
an effort to curb price after last month's high bids, the
government significantly increased the number of plates for auction
this month, he added.
On
Saturday, the auction house, which refused to reveal the highest
bid and the number of bidders, sold 2,000 car plates - 300 more
than last month and the most of any month this year.
The city government sets the number of license plates for sale
every month to limit the number of new privately owned cars in
Shanghai.
(eastday.com December 24,
2001)