China · Edition 002Sunday, 4 October 2026
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The $500 Ladder

Primary sources. Published arithmetic. No courses.

$500 idea · Pattern break · China · Edition 002

Shanghai's bankruptcy auctions have no price floor, and three registered trademarks opened at ¥1,920.

《上海市高级人民法院关于破产程序中财产网络拍卖的实施办法（试行）》(沪高法〔2021〕222号) 第二十二条: "债务人财产网络拍卖的拍卖次数、降价幅度不受限制。" [There is no limit on the number of network auctions of debtor property, nor on the size of the price reductions.] The enforcement auctions running on the same Taobao and JD pages are bound by 法释〔2016〕18号 第十条 — "起拍价不得低于评估价或者市价的百分之七十" — and by 第二十六条, which caps each later round at a 20% cut. On 6 June 2026 the administrator in 上海市第三中级人民法院's 嘉辀电子 liquidation opened three registered trademarks at ¥1,920, third round, deposit ¥384.

The $500 Ladder — China Sunday, 4 October 2026 Edition 002 9 sources

Almost everyone who has heard of 司法拍卖 has heard about apartments: a flat in Minhang at seventy percent of a surveyor's number, a deposit in the hundreds of thousands, a queue of bidders. That is one channel. The other channel is run by a bankruptcy administrator under a creditors' resolution rather than by an enforcement judge under a judicial interpretation, it appears in the same search results on the same two platforms, and the price rules that make the first channel boring do not apply to it at all.

The money question first. Starting capital here is ¥3,368 [$500 USD] and the target is ¥33,676 a month [about $5,000 USD], ¥404,106 a year, struck at the State Administration of Foreign Exchange's central parity of 6.7351 published 30 September 2026. The 嘉辀 lot is 57% of the whole starting stake and buys three registered marks outright — ¥640 each — with ¥1,448 left over. Entry is not the problem on this ladder. Nor, it turns out, is capital.

Read the two rulebooks against each other and the asymmetry is arithmetic. In the enforcement channel a movable-property lot gets two auctions and stops: 70%, then 56% of appraisal, and 法释〔2004〕16号 第二十七条 hands it back to the debtor. Real property and 其他财产权 — trademarks, patents, equity, receivables — get a third under 第二十八条, so 44.8%. In the bankruptcy channel 第二十二条 removes the ceiling on both the rounds and the cuts, and 第十七条 applies the 70% reference price only as a fallback "债权人会议无法就起拍价作出决议的" [where the creditors' meeting cannot resolve the starting price]. When the creditors can agree, they set the number. The 嘉辀 notice says so in terms: the administrator fixed ¥1,920 from the case's 《财产变价方案》, with no appraisal performed.

Which answers the only question that matters about a cheap asset — who is on the other side. The seller is a committee of unpaid creditors whose recovery is being eaten by administrator fees and custody costs every month the estate stays open, holding an intangible that is worth exactly zero the day the case closes. They are not pricing the trademark. They are pricing the delay. And a bidder who turns up alone takes it at the opening number, because 第十一条 says so: "一人参与竞拍，出价不低于起拍价的，拍卖成交。"

0 10k 20k 30k 40k 0 1 2 3 4 5 6 7 8 9 Months of full reinvestment Net income that month, CNY USD 5,000 / month = CNY 33,676 2.8 mo 7.4 mo Two turns a month One turn a month 4.5 months bought by doubling the turn rate, not the capital
Both lines start from the same ¥3,368 and take the same 50% gross margin on cost; only the number of buy-and-resell cycles per month differs. Capital after k turns is 3,368 × 1.5^k and the income it throws off that month is that capital × 0.50 × turns. One turn a month: 3,368 × 1.5^k × 0.50 ≥ 33,676 at k = ln(20) ÷ ln(1.5) = 7.39, so month 8 is the first whole month over the line, at ¥43,159. Two turns a month: 3,368 × 2.25^k ≥ 33,676 at k = ln(10) ÷ ln(2.25) = 2.84, so month 3, at ¥38,364. The margin is the assumption; the turn rate is the decision.

The evidence

9 findings
Regulation沪高法〔2021〕222号 第二十二条、第十七条、第十八条 · 上海市高级人民法院

In a Shanghai bankruptcy there is no limit on rounds and no limit on price cuts

Article 22: "债务人财产网络拍卖的拍卖次数、降价幅度不受限制。为提高财产处置效率，债权人会议关于财产变价方案的决议内容可以明确债务人财产通过多次网络拍卖直至变现为止" [No limit on auction rounds or price cuts. To raise disposal efficiency, the creditors' meeting may resolve that the property be auctioned repeatedly until it is converted to cash.] Article 17 applies the 70% reference-price floor only "债权人会议无法就起拍价作出决议的" [where the creditors' meeting cannot resolve the starting price]. Article 18 sets the deposit at 5–20% of the starting price, and lets the creditors' meeting go outside even that. Document reference, 上海市发展和改革委员会 · full text PDF.

Regulation法释〔2016〕18号 第十条、第二十六条 · 最高人民法院 · in force 1 Jan 2017

The other channel on the same platform has a hard floor and a capped cut

Article 10: "起拍价由人民法院参照评估价确定；未作评估的，参照市价确定，并征询当事人意见。起拍价不得低于评估价或者市价的百分之七十。" [The starting price is fixed by reference to the appraised value, or to market value where none was appraised; it may not be below 70% of that value.] Article 26: "再次拍卖的起拍价降价幅度不得超过前次起拍价的百分之二十。" [The reduction at a re-auction may not exceed 20% of the previous starting price.] 最高人民法院公报 · full text PDF.

Regulation法释〔2004〕16号 第二十七条、第二十八条 · 最高人民法院

Goods get two swings; trademarks, equity and receivables get three

Article 27: "对于第二次拍卖仍流拍的动产…申请执行人或者其他执行债权人拒绝接受或者依法不能交付其抵债的，人民法院应当解除查封、扣押，并将该动产退还被执行人。" [Movable property that fails a second auction goes to the creditor in satisfaction or is released back to the debtor.] Article 28: "对于第二次拍卖仍流拍的不动产或者其他财产权…应当在六十日内进行第三次拍卖。" [Real property or other property rights that fail twice go to a third auction within sixty days.] An intangible therefore has one more statutory price cut in it than a pallet of goods. 最高人民法院.

Derivedfrom 法释〔2016〕18号 第十条、第二十六条 and 法释〔2004〕16号 第二十七条、第二十八条

The enforcement staircase stops at 56% for goods and 44.8% for everything intangible

Round one: 100% × 70% = 70% of appraisal. Round two: 70% × 80% = 56% — and for movable property that is the end of the line. Round three, available only to real property and 其他财产权: 56% × 80% = 44.8%. The gap between the two asset classes is 11.2 percentage points, created by nothing but the category the asset falls into. In the bankruptcy channel neither number binds, because 沪高法〔2021〕222号 第二十二条 removes the cap on both the round count and the cut.

Live listing上海嘉辀电子科技有限公司破产清算案 · 上海市第三中级人民法院 · published 29 May 2026

Three registered trademarks, third round, ¥1,920, deposit ¥384

The administrator of 上海嘉辀电子科技有限公司 offered "上海嘉辀电子科技有限公司名下的商标权3项" on 淘宝网阿里拍卖破产强清平台 from 10:00 on 6 June 2026 to 10:00 on 7 June 2026. Starting price ¥1,920; deposit ¥384; bid increment ¥96 and multiples. No appraisal was carried out — the notice states the administrator fixed the starting price "根据…破产清算案《财产变价方案》" [in accordance with the case's property-realisation plan]. That is ¥640 per registered mark, at the third time of asking. 全国企业破产重整案件信息网.

Live listing河北省电力建设第二工程公司 · 京东拍卖破产强清平台 · published 9 Jan 2026

Eighty-six receivables, first auction, starting prices from ¥1

The estate of 河北省电力建设第二工程公司 put 86 book receivables up individually on 16–17 January 2026, with book values running to ¥12,723,335.37 and starting prices running from ¥1 to ¥10,305,990, deposits scaled to match from ¥1. This is a first auction. In the enforcement channel a first auction cannot legally open below 70% of appraisal; here the creditors resolved a realisation plan and opened where they liked. 全国企业破产重整案件信息网.

Regulation法释〔2016〕18号 第七条、第十一条 · 最高人民法院

The platform takes nothing from the buyer, and one bidder at the opening price wins

Article 7: "社会机构或者组织承担网络司法拍卖辅助工作所支出的必要费用由被执行人承担。" [The necessary costs of the bodies performing auction support work are borne by the judgment debtor.] Article 11: "网络司法拍卖不限制竞买人数量。一人参与竞拍，出价不低于起拍价的，拍卖成交。" [There is no limit on the number of bidders. Where one person bids at or above the starting price, the sale is concluded.] There is no take-rate on this hop and no reserve above the published number — the two things every marketplace normally charges you for. Full text PDF, 上海市发展和改革委员会.

Statute中华人民共和国商标法（2026年修订）第四十六条、第五十七条 · adopted 26 Jun 2026, in force 1 Jan 2027

What you actually buy when you buy a dead company's trademark

Article 46: "转让注册商标的，转让人和受让人应当签订转让协议，并共同向国务院商标管理部门提出申请…商标注册人对其在同一种商品上注册的近似的商标，或者在类似商品上注册的相同或者近似的商标，应当一并转让…转让注册商标经核准后，予以公告。受让人自公告之日起享有注册商标专用权。" [Transfer requires a joint application; similar marks on the same or similar goods must be transferred together; rights pass to the transferee from the date of the approval announcement.] That is why the lot bundled three marks rather than one. Article 57 is the discipline on the other side: a mark unused "没有正当理由连续三年不使用" may be cancelled on anyone's application. The asset is cheap partly because it is perishable. 国家知识产权局.

Derivedshown in full · rate 1 USD = 6.7351 CNY, SAFE central parity 30 Sep 2026

¥3,368 reaches $5,000 a month in eight months at one turn, three at two turns

Target: $5,000 × 6.7351 = ¥33,675.50 a month, ¥404,106 a year. Capital: $500 × 6.7351 = ¥3,367.55. Assume a 50% gross margin on cost per cycle and full reinvestment: capital after k cycles = 3,368 × 1.5^k, and the income in a month with t cycles = capital × 0.50 × t. t = 1: 3,368 × 1.5^k × 0.50 ≥ 33,676 needs 1.5^k ≥ 20, k = ln20 ÷ ln1.5 = 7.39 → month 8, income ¥43,159 on capital ¥86,318. t = 2: 3,368 × 2.25^k ≥ 33,676 needs 2.25^k ≥ 10, k = ln10 ÷ ln2.25 = 2.84 → month 3, income ¥38,364. At t = 1 the month-8 purchase and resale is ¥86,318 of turnover, still inside the ¥100,000 monthly small-scale VAT exemption; month 9's ¥129,477 is not. Rate from 国家外汇管理局's 人民币汇率中间价 table (30 Sep 2026: 673.51 per 100 USD), safe.gov.cn.

The ladder

From $500 to $5,000 a month · ¥3,352 → ¥33,523

Both run on 淘宝网阿里拍卖 and 京东拍卖, and the listings look identical. Only one of them is governed by a creditors' realisation plan with no price floor. The filter is the channel name on the platform and the words 管理人 and 破产 in the notice; 全国企业破产重整案件信息网 publishes the same notices in one place, which is the better place to read them.

  1. Filter for 破产强清, not 司法拍卖

    Both run on 淘宝网阿里拍卖 and 京东拍卖, and the listings look identical. Only one of them is governed by a creditors' realisation plan with no price floor. The filter is the channel name on the platform and the words 管理人 and 破产 in the notice; 全国企业破产重整案件信息网 publishes the same notices in one place, which is the better place to read them.

    沪高法〔2021〕222号 第二十二条 · no round or cut limit

  2. Read the 财产变价方案, not the appraisal

    In this channel the appraisal is often absent entirely — the 嘉辀 notice says so. The number that sets your price is a creditors' resolution, and the resolution usually says how many more rounds it will tolerate before it drops again. That sentence is the whole negotiation, and it is published.

    第十七条 · 70% applies only if the creditors cannot agree

  3. Spend the stake on deposits, not on one lot

    The deposit is 5–20% of the starting price, so ¥3,368 can sit behind several lots at once. The discipline is that it is not leverage: win two you cannot pay for and the deposit is gone under 法释〔2004〕16号 第二十五条 and the court can order a re-auction. Bid on the number you can settle, and let the deposit buy you optionality across lots rather than size on one.

    ¥3,368 ÷ 5% = ¥67,360 of lots covered · settle only one

  4. Hunt 其他财产权, not 动产

    Trademarks, patents, software copyrights, receivables and small equity stakes have one more statutory cut in them, no storage cost, no freight, and a buyer pool thin enough that 第十一条 — one bidder takes it at the opening price — happens regularly. A pallet of goods has two cuts, a warehouse bill and a dozen rivals who can value it on sight.

    44.8% floor vs 56% floor · 11.2 points, by category

  5. Budget the transfer, not just the bid

    A registered mark is not yours at the fall of the hammer. 商标法 第四十六条 needs a joint application with the transferor — here, the administrator — and the exclusive right passes only from the date of the approval announcement. Any similar marks the estate holds in the same or similar classes must go with it, which is why lots come in threes. Get the administrator's signature scheduled before the estate closes.

    商标法（2026）第四十六条 · rights from the 公告 date

  6. Have the exit before you have the asset

    The margin on this ladder is not a market discount you discover afterwards; it is the difference between what a committee will take to close a file and what one identified buyer will pay. If you cannot name that buyer before you bid, you have bought a 第五十七条 clock — three years of non-use and the mark is cancellable by anyone who asks.

    商标法（2026）第五十七条 · 连续三年不使用 → 撤销

  7. Compound the turns, not the capital

    Nothing on this ladder rewards a bigger stake. At a 50% margin and one cycle a month the ¥3,368 reaches $5,000 a month in the eighth month; at two cycles a month, the third. The second cycle is worth 4.5 months, and it costs nothing but having the next lot already found while the last one is still selling.

    3,368 × 1.5^k × 0.50 ≥ 33,676 → k = 7.39 · at t=2, k = 2.84

Sources

9 primary documents
  1. 上海市高级人民法院《关于破产程序中财产网络拍卖的实施办法（试行）》沪高法〔2021〕222号 — 第十七条、第十八条、第二十二条 (full text PDF, 上海市发展和改革委员会)
  2. 沪高法〔2021〕222号 — document reference page, 上海市发展和改革委员会
  3. 最高人民法院关于人民法院网络司法拍卖若干问题的规定 法释〔2016〕18号 — 第七条、第十条、第十一条、第二十六条 (最高人民法院公报)
  4. 法释〔2016〕18号 — full text PDF, 上海市发展和改革委员会
  5. 最高人民法院关于人民法院民事执行中拍卖、变卖财产的规定 法释〔2004〕16号 — 第二十五条、第二十七条、第二十八条 (最高人民法院)
  6. 上海嘉辀电子科技有限公司破产清算案 · 商标权3项拍卖公告（第三次）· 上海市第三中级人民法院 · published 29 May 2026 · 全国企业破产重整案件信息网
  7. 河北省电力建设第二工程公司 · 应收账款86笔拍卖公告 · 京东拍卖破产强清平台 · published 9 Jan 2026 · 全国企业破产重整案件信息网
  8. 中华人民共和国商标法（2026年修订，2026-06-26 通过，2027-01-01 施行）— 第四十六条、第五十七条 · 国家知识产权局
  9. 人民币汇率中间价 · 国家外汇管理局 (30 Sep 2026: 673.51 per 100 USD)