Credible and early bids are two ways to improve the chance of a successful bid for a car plate in Shanghai, according to Wu Yi, vice director of Shanghai Urban Transport Management Bureau yesterday.

The municipal government has adopted new auction rules from this month, aiming to prevent car plate prices from soaring.

Wu said at a municipal press conference yesterday that the new regulations will introduce transparent bidding and more bidding opportunities, designed to help bidders set their own prices rather than relying on information from car dealers.

Bidders can compete for plates on the Internet or on hotlines and a potential lowest bidding price will be calculated and made public early in the auction.

Bidders can change their bids with each new offer limited to within 300 yuan (US$41) over the latest published low price.

Local government has invested to upgrade the bidding system technology but Wu said there is also possibility the system might break down if all the participants changed their bids at the last minutes.

"Considering the time difference between the bidder's latest offer and a constantly changing low price, it is safer to bid at a credible price early," Wu suggested.

A total of 16,000 licenses will be put up for sale at the auction this Saturday morning.

Last month, the average successful bid climbed to a record high of 56,042 yuan - half the price of a Volkswagen Santana while the lowest bid was 50,000 yuan.

Shanghai is the only city in China to limit car licenses through an auction system.