BEIJING, Dec 3 (Reuters) - China's capital, where 4 million bicycles are stolen a year, is clamping down on bike thieves and trying to end the "vicious cycle" of the second-hand market months before it hosts the Olympics, state media said on Monday.

China is home to a world-record 470 million bicycles, but theft is widespread. A common topic of discussion among bike owners is the latest loss, despite chains and padlocks, either in the street or in the lobbies of high-rise apartment blocks.

But starting at the weekend, new bicycles must have identification numbers and buyers must register using their real names, the China Daily said.

"The registration of names, ID and phone numbers will make it easier for police to trace stolen bicycles and return them to their rightful owners," the newspaper said.

Around 4,000 people have been caught stealing bicycles this year in Beijing.

China has been encouraging its citizens to use bicycles instead of cars in recent years, especially in its capital Beijing, where air quality remains the biggest concern for Olympic organisers.

Selling stolen bicylces is big business in Chinese cities, prompting buyers to turn to the second-hand market to minimise their loss should their bike be stolen.

"In this vicious cycle, those who steal bicycles and sell them on the black market benefit while urban residents suffer," the newspaper said.

An overhaul of the second-hand market in May was a move to slam on the brakes on the business.

"If there is no place to sell their stolen bicycles, thieves may possibly wash their hands of this dirty business." (Reporting by Beijing newsroom, editing by Nick Macfie)

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