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China Daily Website

Courts work with Taobao to auction seized assets

Updated: 2013-11-19 17:14
By HE WEI in Shanghai ( chinadaily.com.cn)

Local governments are studying the feasibility of and prioritizing the selling of confiscated goods on electronic auctions via the country’s largest e-commerce platform.

Some 98 local courts across East China’s Zhejiang province have auctioned seized properties worth up to 2.61 billion yuan ($428 million), by teaming up with Taobao, the country’s largest customer-to-customer online marketplace.

As of Nov 19, a total of 1,175 items, most of which are automobiles, have been auctioned via the website since the partnership kicked off last June, according to a notice by Taobao’s parent company Alibaba Group Holding on Tuesday.

The traditional handling of seized assets in lawsuits is largely blamed for lack of transparency and item devaluation. Taobao auctions, in contrast, feature no auction houses or commissions.

More than 90 percent of objects have been transacted successfully through the digital platform, 15 percentage points higher than offline auctions, the company said. The premium rate by Taobao reached 44. 67 percent, up 23 percentage points over other traditional channels.

More than 10 local courts pledged to make a bid to auction seized goods on Taobao for “Double 12”, another online shopping event created by Alibaba, on Dec 12.

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