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    Shanghai reaps $1.9b from license plate auctions

    By Wu Ni | chinadaily.com.cn | Updated: 2013-07-26 21:46

    Revenue from the auction of new car license plates in Shanghai totaled 11.812 billion yuan ($1.92 billion) in 2011 and 2012, according to an audit report released by the Standing Committee of the city's National People's Congress on Thursday, according to local media reports.

    Total spending was 10.789 billion yuan, among which 3.702 billion yuan was used to construct public transportation, 2.609 billion yuan to purchase new public vehicles and 1.835 billion yuan to subsidize preferential prices for the transfer of public vehicles, Shanghai-based Wenhui Daily reported on Friday.

    It cost 1.08 billion yuan to provide senior citizens with free public transit rides and 1.561 billion yuan to construct and maintain public transport infrastructure. The balance was 4.61 billion yuan, according to the report.

    The government report calls for strict supervision of subsidies to ensure funds are effectively used. Shanghai is the only Chinese city that has adopted an auction system to control the distribution of license plates. Beijing uses a lottery system to distribute plates among buyers.

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