What Is an Equipment Auction?

The auction of state-owned assets and property rights means that the state sells the creditor's rights and property owned by the state to buyers through auctions to realize the transfer of asset property rights and recover the proceeds of property rights auctions.

State-owned assets property auction

Right!

The auction of state-owned assets and property rights means that the state sells the creditor's rights and property owned by the state to buyers through auctions to realize the transfer of asset property rights and recover the proceeds of property rights auctions.

Chinese name

State-owned assets property auction

Meaning

Means the country's claims and property

Function

Realizing the transfer of property rights

Form

Comprehensive auction of small state-owned enterprises

1. Holistic auction of small state-owned enterprises ^[1]

The auction of state-owned assets property rights should be in accordance with the state's economic restructuring and national industrial policies, and the object of state-owned assets property rights auctions should be determined in accordance with the requirements for the full and reasonable use of state-owned assets. State-owned assets property auction, which can be all state-owned assets of state-owned enterprises, or individual assets belonging to state-owned enterprises. Unless otherwise stipulated by the state, property rights of state-owned assets can be auctioned. ^[2]

China's state-owned asset auction business has just begun, and the auction market has not been established much, and a network has not yet been formed. The entire market mechanism needs to be further established and improved. Despite this, auction procedures have been established, mainly: ^[1]

First, the auction of property rights of state-owned assets should be based on national laws, which should be conducive to the implementation of the national economic development plan, make full use of the assets being auctioned, and obtain new benefits. ^[1]

Second, the determination of the auction floor price of state-owned property rights should be simple, fair, and reasonable. The reserve price of the asset to be auctioned shall be evaluated and determined through cost method, market method, income method and other methods, and cannot simply be based on the original book value and net value. Organizers of auctions should present the details of the assets in public in order to facilitate bidders to comprehensively consider various factors in the shortest possible time and make a decision on whether to purchase based on their actual situation.

Third, the transaction price of the auction of state-owned property rights should be formed through open competition. Private transactions are prohibited to protect state assets from loss. At the same time, we must prevent low-price sales and leakage of reserve prices.

Fourth, the proceeds from the auction of state-owned property rights should belong to the state. Revenue from the auction of state-owned property rights (including net income from the sale of state-owned enterprises and interest income) shall be managed by the state-owned asset management department as a state-owned asset preservation fund for special use, unless otherwise provided by the State Council.