Local officials auction luxury fleets to pad finances

Local governments in China have begun auctioning off fleets of officials’ luxury cars as slowing economic growth shrinks their finances, Financial Times reported. The city of Wenzhou in Zhejiang province raised a total of RMB10.6 million (US$1.7 million) this weekend by selling 215 cars, and it plans to sell over 1,000 more by the end of the year. Auctions have also been held in cities including Yulin, Shaanxi Province, Changzhou, Jiangsu Province, and Nanchang, Jiangxi Province. Fiscal revenue growth is down nearly 20 percentage points from last year, and the cooling property market has deprived local governments of land sales, a major source of cash. In addition to raising money, the government is likely publicizing the sales to help stem populist anger over government excess. Auto industry analysts estimate that about one in every five Audis in China is owned by the government.