Following the recent start of a real name mechanism for new mobile phones, the real name mechanism has now been adopted to manage the transactions of second-hand mobile phones and PCs.

Under the new real name mechanism, sellers need to take their goods and identification to their local police department for verification and to receive a "registration logo" before they can bring their goods to the market. And the buyers need to let the sellers know about their name and identification before they can take the goods away.

The Beijing Municipal 2008 Environment Construction and Command Department, Beijing Municipal Public Security Bureau, Beijing Municipal Department of Industry and Commerce and Beijing Municipal City Management Department have jointly announced that buyers and sellers who fail to provide the source of the purchased goods will be detained.

It is unclear how this will affect the online auction market in China. Currently, websites like Taobao.com and eBay (EBAY) are trying to encourage the growth of a second-hand market. But rules like the real name mechanism may greatly stifle development.