Legal basis: People's Republic of China (PRC) Auction Law.
Article 6 The subject matter of an auction shall be articles or property rights owned by the trustor or which can be disposed of according to law.
Article 7 Articles or property rights prohibited by laws and administrative regulations shall not be used as auction targets.
Eighth articles or property rights transferred according to law or in accordance with the provisions of the State Council shall go through the examination and approval procedures according to law before the auction.
Before the auction, the cultural relics entrusted for auction shall be appraised and approved by the cultural relics administrative department of the auctioneer's domicile.
Article 9 Articles confiscated by state administrative organs according to law, articles used to offset taxes and fines, and other articles that should be entrusted for auction as stipulated by the State Council shall be auctioned by auctioneers designated by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government where the property is located and the people's governments of cities divided into districts.
The provisions of the preceding paragraph shall apply to the auction of articles confiscated by the people's court according to law, articles used to offset fines and recovered articles that cannot be returned.