The auction that attracted only two buyers began at about 10 a.m. Wednesday, with an initial price of 1.3 billion yuan (US$156.63 million).

The auctioneer had to take back the property at about 11 a.m. when none of the buyers showed interest in owning the skyscraper.

It is the second time the so-called 'biggest auction in China' has failed.

The auction includes a five-star hotel skyscraper, a 30-floor office sub-wing and a 35-storey luxury apartment house. The auction covers a floor space of 143,800 square metres.

The first auction of the property took place on December 18, 2001 but no one made a bid. The initial price of the building started at 1.6 billion yuan (US$192.77 million) at that time.

Local auctioneers attributed the high price and the current poor world economic situation to the failure of the auction.

But the property is still worth buying, auctioneers said.

Located on Guangzhou's busy Huangshi Donglu, the Guangdong International Building was built and owned by the Guangdong International Trust and Investment Corporation (GITIC) which went bankrupt in November 1998 during the Asian financial crisis in 1997.

(China Daily January 31, 2002)