Guangzhou's city government says it will consult the public on its controversial plan to limit car registrations, which would see the number of new licences capped at 10,000 a month - half sold through auction and the rest drawn in a lottery.
Announcing details of the policy at a press conference yesterday, the city's Transport Commission said the public would be given 20 days to express their opinions on how best to allocate the quota.
No car registrations will be processed for cars sold this month, with further details of the quota policy needing to be rolled out. It is expected to be implemented from next month.
The Yangcheng Evening News reported that money generated from the auctions would be used to fund public buses and bidders will have to pay a deposit before participating. It also said that people applying to register cars would have to have been residents of Guangzhou for three years or more.
Lottery draws will be held on the 26th of each month.
Luo Jialiang, the 53-year-old owner of a second-hand car business with more than 30 cars in stock, said he was worried that his business would have to close as a result.