Issues And Solutions In The Auctions Of The Assets Of Bankrupt Chinese Enterprises

In September 1986, China's first bankrupt enterprise, Shenyang Explosion Protection Devices Factory, was auctioned. In recent years, the annual number of bankruptcy cases processed by Chinese courts has averaged about 6,000. The Provisions the Supreme People's Court Regarding Certain Issues in the Processing of Bankruptcy Cases by mandate that"the realization of bankrupt assets shall be achieved through auctions". As such, there is a particularly urgent need to research the auctions of bankrupt assets.This paper attempts to probe the issues and solutions in the auctions of the assets of bankrupt enterprises from the perspective of corporate management. This paper consists of three chapters:Chapter I first gives a brief account of the concepts and basic knowledge of auctions, the origin and evolution of auctions, the present conditions and characteristics of the development of auctions in China and abroad, the concepts of the auctions of bankrupt assets, and the major procedures of auctions.Chapter II probes the issues in the auctions of the assets of bankrupt enterprises. It presents analyze to issues in the identification of consignors, project planning, asset appraisal, the selection of a suitable means of auction for bankrupt assets, the determination of reserved price, the timeframe for the payment of transaction prices, the handover of auctioned objects, the time of the release of auction announcements, the media for the release of auction announcements, the attention rate of auction announcements, the registration of bidders, breach of regulations by bidders, collusion among bidders for bankrupt assets, the retention of auction documents, and other practical affairs relating to the auction of bankrupt assets.Chapter III presents solutions to the issues which have been raised.