(Yicai Global) Jan. 31 -- China United Network Communications Co., one of the big three Chinese telecom operators, and the auction platform of e-commerce giant Alibaba Group Holding Ltd. today formally opened an online asset trading platform, they announced.

The two demonstrated the process of bidding on 1,000 mobile phones in 'defective boxes' via the trading platform. 'Defective boxes' are those where only the outer packaging is damaged with the quality of the products within remaining unaffected. Nearly 2,000 participants joined in the auction, bidding more than 7,000 times, as over 250,000 others watched online.

China Unicom struck the corresponding agreement with Ali Auction in December. As of now, 150 companies have set up in the online auction house, 17 of which have put their factory seconds under the hammer.

China Unicom has connected its internal asset disposal system with Alibaba's auction system. The former will further leverage the latter's asset disposal experience and internet technologies to create an intelligent asset trading center.

China Unicom underwent mixed-ownership reform last year, introducing several internet companies as investors, including Alibaba, and thereby reduced state-owned capital's share in the company. Alibaba now holds 2% of China Unicom's shares and the two sides have reached a cooperative agreement encompassing cloud computing, financial technology and other matters.