SHANGHAI (Reuters) -A publication of China's top auto industry association said on Monday that its report about China's industry ministry planning to ban the resale of cars within six months of their initial registration was "inaccurate", and it deleted that line from its story.

Auto Review, the official media outlet run by the China Association of Automobile Manufacturers, said in a statement to Reuters that its article published on Saturday "contained inaccurate descriptions related to the Ministry of Industry and Information Technology (MIIT) and other relevant authorities concerning zero-mileage used cars."

"These inaccuracies have since been deleted and corrected," it said.

The publication updated its story to read: "MIIT plans to regulate the zero-mileage used cars together with relevant departments and manage the issue from its source."

Auto Review had reported on Saturday that MIIT planned to ban the resale of new cars within six months after their registration as part of efforts to combat sales of so-called zero-mileage used cars.

It reported then that the China Automobile Dealers Association, another industry group, had separately proposed a code system for exports of used cars. On Monday, Auto Review also corrected that line in the article to say the group proposed to "set up a relevant mechanism", without elaboration.

The article, published on its official WeChat account, also said Chery and BYD were among companies planning to hold dealers accountable for violations, including licensing cars before they were sold. This portion of the article remained unchanged after the correction.

Zero-mileage used cars have emerged in China as a result of the uniquely cutthroat competition for sales in the world's largest auto market, which is reeling from a brutal, years-long price war caused by chronic overcapacity.

The practice involves insuring a new vehicle before it is sold, allowing automakers and their dealers to meet sales targets.

There have been several signs China's central government was preparing a crackdown, from a Communist Party newspaper condemning zero-mileage used cars last month to the country's cabinet pledging on Wednesday that it would control "irrational" competition in the domestic electric vehicle industry.