Beijing licence plates fetch twice the price of the car on black market

Beijing's clampdown on new car registrations is creating a scramble for licence plates and fuelling a boom on the black market where prices have hit as high as 200,000 yuan (HK$256,000), almost double the price of the mainland's best-selling car, the Ford Focus.

Keen to curb pollution and traffic jams, the capital instituted a lottery in 2011, where it initially awarded plates to one in 10 people hoping to get a car. This year, it will cut the allocation by 40 per cent to 150,000, meaning only one in 150 will get a plate.

The long odds have created a thriving black market, even though it is illegal to buy, sell or rent a number plate. Those eager to own a car say they are willing to take the risk.

"I participated in every lottery over the past two years but have never won. I'm desperate," said Han Kuilong, who rented a car plate last month for 5,000 yuan a year. "I live on the outskirts but work in the city. Life is very inconvenient without a car."

The Beijing municipal government's traffic management bureau confirmed that trading in car plates was illegal.

Lawyers say the government can fine people involved in these deals and revoke their licences but the practice is so widespread it is impossible to police.

"Such deals are unlawful," said Yang Lisha, a lawyer. "But many people are in this market, so the cost of enforcement is very high."