Manufacturers face flat tire when sales bubble bursts

Bicycle manufacturers were quick to cash in on China's booming bike-sharing industry after going through lean times.

But the ban rolled out by 12 major cities in the country on new cycles will hit domestic companies in the pocket, driving a new round of restructuring in the sector.

"It is clear that there's a bottle neck in market demands and manufacturers should have taken that into account at the very beginning," said Guo Jinzhi, chairwoman of the Beijing Electric Bicycle Industry Association.