Commercial banks auction stock rights and NPA on Taobao   

借互联网平台拍卖股权 淘宝成商业银行跳蚤市场

逛逛淘宝就能购买抵押给银行的房产，也能摇身一变成为银行股东。在网购潮流持续风靡的今天，不少商业银行通过网络进行股权拍卖或处置不良资产。有钱任性的土豪们可以在拍卖中捡漏，成为银行股东享受分红，也可以用更低的价格购买房产。 [查看全文]

(ECNS) -- Online shoppers can buy foreclosed collaterals or become shareholders of commercial banks via Taobao, China's largest online marketplace, Beijing Business Today reported Friday.

Recently, Bank of Wenzhou concluded an online auction of its 148,281 shares at 834,500 yuan ($133,436), nearly 5.63 yuan per share, and 75.86 percent higher than assessed.

With a long waiting list for initial public offerings, many rural and urban commercial banks like Bank of Wenzhou are resorting to online shopping platform Taobao to auction their share rights.

China Minsheng Bank's branch in Shanghai has been offering for sale foreclosed properties at between 2.25 million yuan and 9.5 million yuan, but so far no one has signed up for the auction.

Analysts warn that there was not enough publicity before the auctions, so people are largely unaware that non-performing assets (NPAs) can be bought online.

A Taobao staff member said any member who has registered their real names on Alipay and paid a required deposit is eligible to take part in auctions offered by banks on its site.

Apart from deposits, one-off payments within three to 10 days of the auction closing is required for buyers of foreclosed houses; those who cannot meet this requirement will lose their deposits, it was added.

One insider thinks that disposing of NPAs on the Taobao website brings high transparency to the market and is in accord with transaction rules pertaining to openness, fairness, and justness alongside honesty and credibility.

Traditional offline auctions are not time and cost effective, with many assets sold at low prices, sometimes even lower than the loans; banks often find themselves in a disadvantaged position by letting a third-party dominate the handling of these assets, it was further noted.