In order to prevent fraudulent bidding, bribery and other illegal conduct in auction markets, the Interim Measure for the Supervision and Management of Auctions was recently issued by the Administration of Industry and Commerce ("AIC") and entered into force on March 1, 2001. This measure stipulates that local AICs are entitled to be present to supervise the process of auctions. Any enterprise holding an auction must now register with the local AIC within seven days prior to the date the auction is to be held. The State AIC hopes that such regulation will result in noticeable reductions in instances of fraud associated with auctions.
──Jonathan You