China auctions actress's 18 homes

Liu starred in many Chinese films in the 1980s

Eighteen homes belonging to popular Chinese actress Liu Xiaoqing, who was convicted of tax fraud, have been auctioned for 6.6 million yuan ($796,500), state press reported on Monday.

The money will be used to pay the 14.6m yuan ($1.8m) in taxes that Liu was last month convicted of dodging, Xinhua news agency said.

Punishing Liu Xiaoqing like this is a warning to the public

Liu Weidong, bidder

Liu was arrested in Beijing in June, as part of what correspondents say was a government crackdown on wealthy people exploiting tax loopholes.

She was charged with tax evasion in connection with her company, the Beijing Xiaoqing Culture and Arts Company Ltd, and fined 5.7m yuan ($700,000).

Authorities said an investigation found that several companies run by Ms Liu had been making false declarations about revenues and expenses.

Fourteen of the house and apartments on offer at the auction were located in Beijing, two in south-west China's Chongqing municipality and two in southern Guangdong province. The properties were sold well below their market value.

"Punishing Liu Xiaoqing like this is a warning to the public, to business people. It tells everyone that they should pay taxes in accordance with law," said lawyer Liu Weidong, a bidder at the auction

Illustrious performer

Ms Liu, an award-winning performer, starred in many Chinese films throughout the 1980s.

She twice won the Baihua Best Actress award and appeared as Hibiscus Town, Little Flowers, Cixi's Eunuch, Li Lianying and Ruling From Behind the Screen - all considered Chinese classics.

She gave up acting in the 1990s to become a businesswoman.

Ms Liu has in recent years been at the centre of China's tabloid press while becoming associated with a series of scandals involving business and real estate.