Managing the auction process.

The article provides an understanding for foreign deal makers of the auction process on sale of state-owned enterprises (SOE) in the People's Republic of China (PRC) to effectively manage a transaction. A requirement in such transaction is for the auction to be conducted by a local Property Rights Exchange (PRE). Under the PRC law, a seller is allowed to impose capitalization, management skill and other qualification requirements for potential bidders to structure the bidding conditions. Such deals also apply rules on deposit and payment obligations.