Judicial interpretation issued to regulate online court auctions

A new judicial interpretation has been issued by the top court to regulate online judicial auctions.

The Regulations on Online Auctions for Judicial Sales, mapped out by the Supreme People's Court, will take effect on Jan 1.

Meng Xiang,?head of?the law enforcement department of the Supreme People's Court, said on Wednesday that online auctions will lower the cost of judicial sales and allow people from anywhere to take part.

They are expected to help increase transparency of law enforcement and better protect creditors' interests, Meng said.

"Each e-auction organized by a court requires a deposit, even in auctions for small items, which is different from the practice in auction houses," Meng said.

The regulations stipulate that the deposit should not exceed 20 percent of the starting bidding price and each online auction is required to last at least 24 hours to better enable all parties to take part.

More than 1,400 courts have organized online auctions since 2010, when such practices were allowed for judicial sales, and deals worth more than 150 billion yuan ($23 billion) have been reached, according to the top court.