The very first auctions took place in Rome, where trophies were sold after each war. The seller would stick a spear into the ground to draw people's attention, hence the saying still used today: "Deal under the spear."
In the later half of the 19th century, the English introduced the concept of auction to China. The early auction venues were simply furnished rooms, with a few chairs, a displaying table, a gong and a hammer. When the gong was struck, the auction was over.
"Auctioneer" was recognized as an official job function by the 8th National People's Congress in 1996.
In recent years, the business has become more lucrative, drawing more talents in the trade. He Libin says that China now has some 5,000 auction houses, which employ nearly 50,000 people. He explains that auction companies earn commissions as intermediaries - usually a 10 percent commission is charged to both the buyer and the seller.
It is by no means cheap to host an auction. An auction house must spare no expense on publicity, sending out beautifully printed catalogues, which may cost hundreds of thousands of yuan, even millions of yuan, to compile and produce. Other expenses include renting a venue, storage of the auction pieces, insurance and entertainment.
"With a history of 5,000 years, China is acknowledged as a rich source for relics and art," says He. "The market potential is, understandably, huge."
(China Daily July 21, 2008)
