Invitations
Let your most endeared or tolerable friends, family and coworkers know that you are hosting a Chinese auction. In lieu of presents, you have a wide variety of options. Set a low price limit or have your guests select something from their homes that they no longer use or want. In general, the stranger the gift, the better. Tell your guests to have themselves and their wrapped gifts at your home by the appointed time.
The Game
As your guests arrive, have them pile their gifts in the middle of the floor and join the others for some light refreshment and conversation in the next room. After all, a little anticipation can make for more merriment.
When the time has come for the auction, instruct your guests to sit in a circle around the presents. In the interests of fairness, draw someone's name from a hat to go first. The first guest will select a present from the pile, open it, and display it for everyone to see.
Then, go around the circle. Each guest will take a present from the pile. This time, the guest can choose whether or not to open it. If the guest chooses to open it, he can exchange it for any of the previously opened gifts as well as the wrapping it came in. If the guest chooses not to open it immediately, he may keep it, but is not allowed to swap.
When everyone has chosen a gift, have those who have not opened their gifts to go ahead and do so. Then come back to the very first player. She is now at liberty to exchange their gift for any of the previously opened gifts in the room.