Liquidators should use public auctions when disposing of assets under a new set of legal opinions released by the Supreme People's Court.
Court vice-president Huang Songyou said existing laws and regulations were vague on the liquidation of assets in civil cases.
The newly released guidelines made it clear that liquidators should first consider auctions in selling off assets, Xinhua quoted Mr Huang as saying.
The opinions also require courts to draw lots in deciding which auction houses are chosen.
This would end fears that court officials pick companies they personally favour.
'In previous years, some courts have directly assigned auction companies and that led to abuse of power because the assignment procedures were not subject to proper supervision,' Mr Huang said.
