Of course the court can auction it, but the bank has the right to apply for priority in receiving the auction money.

"Interpretation of the Supreme People's Court on the Application of the Civil Procedure Law of the People's Republic of China":

Article 508 The person subject to execution is a citizen or other organization. After the execution procedure begins, if other creditors of the person subject to execution who have obtained the basis for execution find that the property of the person subject to execution cannot pay off all their claims, they may apply to the People's Court to participate in the distribution.

Creditors who have priority and security rights to property that has been sealed, detained, or frozen by the people's court may directly apply to participate in the distribution and claim priority for repayment.

Article 509 To apply to participate in allocation, the applicant shall submit an application. The application shall state the facts and reasons for participating in the distribution and the person subject to execution being unable to pay off all claims, and shall be accompanied by the basis for execution.