Bidders paid 8.68 million yuan (US$1.4 million) for 73 vintage watches and jewelry items at the first auction held in Shanghai's pilot free trade zone Sunday.

A 5.51-carat yellow diamond garnered the top price of 700,000 yuan, up from its starting price of 650,000 yuan.

The auction of 90 items, operated by the Shanghai Taste Auction Co Ltd, attracted about 50 bidders.

The auction was an attention grabber because it was the first to be held in the zone, with most of the works provided by overseas collectors.

"The biggest benefit of holding an action in the zone is that it enables foreign collections to be displayed and sold within the zone without payment of duty," Hu Huanzhong, general manager of Shanghai Waigaoqiao International Culture and Art Development Co Ltd, the organizer of the auction, told Shanghai Daily.

However, buyers have to pay taxes if they want to bring the goods back into domestic territory beyond the free trade zone.