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The supply of car plates fell 43.6 percent last year after Hangzhou adopted a lottery and auction system last year, the Hangzhou Transport Bureau said.
Reducing the number of plates proved effective in easing traffic congestion and improving local air quality, the bureau said.
The city government now issues 80,000 car plates a year, 64,000 through lottery and 16,000 through auction. After the rationing system was put to practice last May, the number of newly registered plates dropped significantly.
A monthly car plate lottery was held last Wednesday with a winning chance of 0.81 percent, meaning one plate for every 123 participants. The average bidding price was down 2 percent to 16,381 yuan, compared with 16,731 yuan in December.
After the average bidding price soared to 47,785 yuan last October, people acted more rationally and the price fell to a range between 10,000 yuan and 20,000 yuan.
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