[extract]

Guangzhou, the capital of the Guangdong province is the home to some 11 million residents. Like Singapore, the city is concerned about traffic congestion problems. Hence, from July 2012, the transport department will grant no more than 10,000 new car licenses per month.

Out of the 10,000 licenses, 5,000 plates will be allocated via a lottery system while the remaining 5,000 will be auctioned off. The funds collected will contribute towards the development of the city