(Shanghai Daily news)

Automobile license plate prices in Shanghai continue to rise and show no signs of stopping.

The average winning bid at a license plate auction held over the weekend was 43,333 yuan (US$5,221), the highest average price ever and 3,280 yuan more than last month. The lowest winning price was 43,000 yuan, 3,400 yuan more than last month, according to Shanghai International Commodity Auction Co, the organizer of the monthly event.

Both the average and lowest prices were the highest since the city adopted its plate control policies four years ago.

Prices have been on the rise for months and many neighboring cities have stopped selling plates to Shanghai residents, a loophole many locals used in the past to avoid paying thousands of dollars for a plate.

It is estimated that more than 20,000 local residents have bought license plates for their cars in neighboring cities over the past year. Many nearby cities only charge a few hundred yuan for plates.

At a meeting last month, traffic authorities from around the region reached an agreement to stop out-of-town license plates being sold to Shanghai car owners. The policy gives the Shanghai government more control over how many cars are on local streets.

Individuals and private firm owners in Shanghai must buy a license plate before they can buy a new car. The government controls the number of plates sold every month as a way of controlling air pollution and traffic congestion caused by a growing number of vehicles on local streets.

Some analysts expect the city to increase the number of plates up for sale next month in order to lower plate prices.

Nearly 10,000 people bid for 4,800 plates up for sale at Saturday's auction, the organizer said. That's the same number of plates the government sold last month.

The government released 14,000 plates in 2000 and 15,900 in 2001. The quota increased to 31,850 in 2002 and 53,068 last year. However, the amount is still well short of demand in the city.