What is an Auction Market?

The auction market usually refers to the system of securities trading by brokers or exchange agents. Buyers and sellers compete with each other to get the best price. Most transactions take place between the client (through the broker) and the rest between the client (through the broker) and the expert broker (or proprietary trader). In the auction market, an agency specializing in auctions sells the auctioned goods to the buyer with the highest price at a specified time and place and in accordance with certain rules through public bidding.

Auction market

As a special marketing method for property rights transactions, auctions are characterized by:

The particularity of auction objects. The auction of property rights of enterprises shall be conducted in accordance with relevant national policies and regulations. The property rights of enterprises entering the auction market are usually as follows: (1)

Auction, as a marketing method of property right transaction, has exerted its high-efficiency, value-added, and transparent functions in the reform of China's enterprise property rights, and realized the optimal allocation of resources. One of the top ten news selections of Chinese companies in '97 was "the nation's largest foreign-related tax-resistant case, and Shenzhen Baori Golf Course was auctioned according to law" with a turnover of 260 million yuan. Property auctions are gradually understood and accepted by people. After the implementation of the "Decision on Liberating and Invigorating Small State-owned Enterprises" and "Decision on Vigorously Developing the Non-Public Ownership Economy" by the Shaanxi Provincial Party Committee and the Provincial Government, the auction of corporate property rights has progressed rapidly. According to incomplete statistics, more than 20 property rights auctions were held, with more than 100 transactions, with an auction turnover of 260 million yuan, which exceeded the reserve price of more than 46 million yuan, including more than 80 million yuan of bankruptcy property auctions. Although the practice of property auction in China's state-owned enterprises has just started, there are still many imperfections in theoretical preparation and operation, but the prospects for development are very broad.