(Adopted at the 20th Meeting of the Standing Committee of the Eighth National People's Congress on July 5, 1996, promulgated by Order No. 70 of the People’s Republic of China on July 5, 1996, and amended according to the Decision of the Standing Committee of the Tenth National People’s Congress on Amending the Auction Law of the People’s Republic of China adopted at its 11th Meeting on August 28, 2004)

Contents

Chapter I General Provisions

Chapter II Objects of Auction

Chapter III Parties to Auction

Section 1 Auctioneer

Section 2 Client

Section 3 Bidder

Section 4 Vendee

Chapter IV Auction Procedures

Section 1 Authorization of Auction

Section 2 Announcement of Auction and Display of Objects of Auction

Section 3 Execution of Auction

Section 4 Commission

Chapter V Legal Responsibility

Chapter VI Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is enacted for the purpose of standardizing acts of auction, maintaining order of auction and protecting the lawful rights and interests of all the parties in activities of auction.

Article 2 This Law shall be applicable to auction activities conducted by auction enterprises within the territory of the People's Republic of China.

Article 3 Auction refers to the means of selling and buying by which specific articles or goods or property rights are transferred through public bidding to the bidder that offers the highest price.

Article 4 The parties in activities of auction shall abide by the relevant laws and administrative regulations and adhere to the principles of openness, fairness, justice and good faith.

Article 5 The department in charge of administration of the auction trade under the State Council shall exercise supervision over and administration of the auction trade throughout the country.

The departments in charge of administration of the auction trade under the people's governments of provinces, autonomous regions, municipalities directly under the Central Government, or cities divided into districts shall exercise supervision over and administration of the auction trade in their respective administrative regions.

Chapter II

Objects of Auction

Article 6 Objects of auction shall be the articles or goods or property rights which are owned by the client or which the client may dispose of according to law.

Article 7 Articles or goods or property rights prohibited for sale by laws or administrative regulations shall not be made objects of auction.

Article 8 With respect to the articles or goods or property rights whose transference is subject to examination and approval as provided for by laws or the regulations of the State Council, the parties concerned shall, prior to their auction, go through the formalities for the examination and approval according to law.

With respect to the cultural relics under authorization for auction, they shall, prior to their auction, be subject to appraisal and permission given according to law by the administrative department for cultural relics in the place where the auctioneer's residence is located.

Article 9 With respect to articles or goods confiscated or used to offset tax money or fines by the administrative organs of the State in accordance with law and other articles or goods, all of which should be auctioned through authorization as prescribed by the regulations of the State Council, the auction shall be conducted by auctioneers designated by the people's governments of the provinces, autonomous regions, or municipalities directly under the Central Government or of the cities divided into districts, where such property is located.

Auction of articles or goods confiscated or used to offset tax money or fines by the People's Courts in accordance with law and other articles or goods that are retrieved but cannot be returned to their owners shall be governed by the provisions of the preceding paragraph.