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On September 10, Guiyang City completely cancelled the purchase restriction of cars. According to the official news of Guiyang City Government, the People's Government of Guiyang City made a decision on September 10,2019 to abolish the Interim Provisions on the Administration of Passenger Car Number Plates in Guiyang City, which shall come into force as of the date of promulgation.

On September 10, the Development and Reform Commission of Guizhou Province and other nine units have jointly issued the Notice on Several Policies and Measures to Promote the Sustainable and Healthy Development of Automobile Consumption Market by the Provincial Development and Reform Commission and Other Nine Units, proposing to increase the number of license plates issued by Guiyang City by more than 30,000 on the basis of 2018 in 2019, and cancel the number plates of passenger car sections in real time according to specific conditions.

Guiyang is the third province and city after Beijing and Shanghai to implement the car purchase restriction policy. On July 11, 2011, Guiyang City Government issued the Interim Provisions on the Administration of the Issuance of License Plates for Special Passenger Cars in Guiyang City (hereinafter referred to as the "Provisions"). According to the Regulations, the newly registered passenger cars in Guiyang are managed in two categories: the first category is the number plate of special section of small passenger cars, which is allowed to enter all roads, and the quota management system shall be implemented for 2000 vehicles per month; the second category is the ordinary number plate, which is prohibited to enter the roads within the first ring road (including the first ring road), and the number of issued vehicles is not limited.

A person familiar with the matter told the reporter of China Securities News that Guiyang cancelled the restriction mainly in order to optimize the business environment and assist the high-level opening to the outside world. "On the one hand, with the urban development of Guiyang, the traffic restriction policy implemented before has been unable to alleviate the congestion phenomenon; on the other hand, Guiyang City has recently carried out high-level opening to the outside world to optimize the business environment, and the license plate shake number seriously affects the business environment."

The implementation of the liberalized purchase restriction policy has caused some controversy among the citizens of Guiyang. A citizen of Guiyang told the China Securities News reporter: "For those who want to get license plates, it is still very supportive." However, there are also many citizens in an interview with reporters said, Guiyang should not cancel car purchase restrictions, because the city roads will be more blocked in the future.

A citizen smiled bitterly and said: "The number has been shaken for so long, and finally it has been shaken. Now it has been cancelled." Some citizens suggested that only by improving planning, improving the quality of drivers and increasing fines can the traffic jam problem be better improved. Cancelling purchase restrictions may lead to more congestion in a short time.

In order to boost consumption, since the beginning of this year, the state has issued a number of documents urging car purchase restrictions to be lifted.

At the beginning of June, the National Development and Reform Commission, the Ministry of Ecological Environment and the Ministry of Commerce issued the Implementation Plan for Promoting the Renewal and Upgrading of Key Consumer Goods and Smooth Resource Recycling (2019-2020)(hereinafter referred to as the "Plan"). According to the plan, it is strictly prohibited to issue new automobile purchase restriction regulations in various places. Local governments that have implemented automobile purchase restriction shall accelerate the shift from restricted purchase to guided use according to urban traffic congestion, pollution control and traffic demand control effect, reasonably set congestion areas in combination with road congestion conditions, study and explore the classified use policies of vehicles inside and outside the congestion areas, and in principle, no purchase restriction shall be imposed outside the congestion areas. No restrictions or purchase restrictions shall be imposed on new energy vehicles, and those that have been implemented shall be cancelled. Local governments are encouraged to support car-free families in purchasing their first new energy vehicles.

On August 27, 2019, the General Office of the State Council issued the Opinions on Accelerating the Development of Circulation and Promoting Commercial Consumption (hereinafter referred to as the Opinions), proposing 20 policy measures to stabilize consumption expectations and boost consumer confidence. The opinion puts forward: "The implementation of car purchase restrictions in the region should be combined with the actual situation, explore the implementation of specific measures to gradually relax or cancel the purchase restrictions." Where conditions permit, active support will be given to the purchase of new energy vehicles. Promote the circulation of second-hand cars, further implement the policy of completely abolishing the restriction on relocation of second-hand cars, and key areas for air pollution prevention and control should allow second-hand cars that meet vehicle emission standards to be traded and circulated within the province (city)."

According to the data, there are 61 cities with more than 1 million cars, 27 cities with more than 2 million cars and 8 cities with more than 3 million cars. Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Shijiazhuang, Guiyang and Hainan have previously implemented the purchase restriction policy.

In addition to Guiyang, Guangzhou, Shenzhen, Hainan three provinces and cities have previously made positive responses to the purchase restriction policy.

On June 3, Guangzhou and Shenzhen took the lead in issuing new policies to relax car lottery and auction indicators. Among them, Guangzhou City will increase 100,000 small and medium-sized passenger car increment indicators from June 2019 to December 2020; Shenzhen City will increase 40,000 ordinary car increment indicators every year from 2019 to 2020.

On August 30, multi-departments of Hainan Province jointly announced Measures on Implementing Automobile Consumption Policies. Since September 2019, as of the month of shaking numbers, the increment index of abandoned ordinary passenger cars in the same period of last year and last month shall be automatically included in the total increment index of ordinary passenger cars in the current month. From August to December 2019, on the basis of the original increment index number of ordinary passenger cars, the increment index of ordinary passenger cars shall be increased appropriately every month.

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