The world's leading auction company of used vehicles Manheim Auctions and Shanghai International Commodity Auction Co., Ltd, have announced the establishment of a joint auction venture, the first of its kind in China.

The joint venture, namely Shanghai Manheim International Commodity Auction, received approval from the Ministry of Commerce on April 6, according to company officials. The two parties' investment in the venture is not available.

Manheim would be the main share holder of the joint venture, which will start operation in the third quarter of this year and is expected to make a profit after one year, company officials said.

With the joint venture, Manheim, based in Atlanta, the United States, became the first foreign company to set foot in the auction industry and the used car market in China.

"We have been waiting for 20 years to enter the Chinese market, " said Neville Green, president of Shanghai Manheim.

Shanghai Manheim currently has a salesroom under reconstruction.

Manheim is the world's leading provider of used vehicle services and marketplaces to professional buyers. It auctioned about 5 million used cars worth 55 billion U.S. dollars last year.

The Shanghai International Commodity Auction Co., Ltd. was established in 1988. It organized nearly 200 auctions last year with the volume of business exceeding 4 billion yuan (500 million dollars).

According to an auction regulation which came into effect on Jan. 1, 2005, foreign companies are allowed to hold auctions on the Chinese mainland.

Source: Xinhua