Overseas investors will soon have the chance to explore China's Internet sector.

An auction gala will be organized for the bulk of Chinese Internet websites who want to sell their assets.

Organizers promise that foreign investors will be able to bid on an equal footing with domestic buyers, for anything from domain names, Internet technologies, web content to whole dotcom companies.

The auction, the first of its kind in China, is to be held in Beijing at the end of this month and is being promoted by the China International Trade Promotion Committee, a body affiliated to the foreign trade ministry.

An estimated 200 Internet companies will be involved in the auction.

Since registration for the auction began a week ago, around 10 websites have been handing in their applications for sale every day and 20 have already applied to buy, organizers said.

A number of foreign-funded companies have already expressed their intention to take part in the bidding.

"The auction will reallocate the resources of the Internet industry in China through open and fair trade," said Lu Benfu, director of the Internet Research Centre of the Chinese Academy of Social Sciences, an active organizer of the auction and a member of the experts panel that will evaluate the Internet websites that are to be sold.

"Foreign investors are especially welcome to take part in the bid," he said.

Although the government has set strict rules on ISPs (Internet service providers), such as a 49 per cent ceiling for foreign stakes in ISP companies, the overall policy environment is relaxed towards the overseas acquisition of and mergers with dotcom companies, experts said.

Foreign access to the sector will be further expanded after China joins the World Trade Organization.

To ensure the smooth process of bidding and buying for foreign participants, the organizing committee will provide comprehensive legal consultation to overseas investors on the legal procedure of purchase and the sector's policy environment.