Beijing is to slash the number of license plates it hands out for new cars by one-third in an effort to ease traffic congestion and pollution.

The announcement came as it emerged that people are buying struggling small businesses that hold vehicle registrations to avoid having to enter the capital's license plate lottery.

Companies and individuals must take part in a monthly draw to register a new vehicle, with a total of 150,000 plates up for grabs every year-90,000 for gas-powered vehicles and 60,000 for new-energy vehicles.