To improve China’s system of asset valuation standards and to standardize the professional conduct of certified asset appraisers in related emerging business areas, the China Association of Asset Appraisers (hereinafter referred to as “CAA”) issued the “Guiding Opinions on the Valuation of Investment Properties (Trial)” and the “Asset Valuation Standards—Jewelry and Ornaments” on December 18, 2009. With these two documents, China has now established a relatively complete set of valuation standards covering major practice areas in asset valuation, comprising two basic standards, eight specific standards, two asset valuation guidelines, and six asset valuation guiding opinions.
Jewelry and jewelry appraisal is an important component of asset valuation in China and also a key area regulated by valuation standards. The “Asset Valuation Standards—Jewelry and Jewelry” has been revised on the basis of the “Guiding Opinions on Jewelry and Jewelry Appraisal.” Compared with the original guiding opinions, the “Asset Valuation Standards—Jewelry and Jewelry” places greater emphasis on the specialized characteristics of jewelry and jewelry appraisal. For instance, jewelry and jewelry appraisal work must be grounded in the identification and grading of jewelry items, requiring appraisers to possess relevant knowledge and experience in jewelry identification and grading. Therefore, the standards stipulate that individuals signing jewelry and jewelry appraisal reports must hold the Certificate of Registered Asset Appraiser (Jewelry) issued by China. In terms of structure, terminology, and content, the “Asset Valuation Standards—Jewelry and Jewelry” achieves a scientifically sound alignment with the existing standards system and pays close attention to integrating international best practices with China’s national conditions. The jewelry and jewelry appraisal standards developed in China represent the world’s first set of specialized standards for jewelry and jewelry appraisal. They reflect the Chinese appraisal industry’s serious commitment to serving both the market and the economy. While standardizing jewelry and jewelry appraisal practices in China, these standards will undoubtedly have a positive impact on the development of jewelry and jewelry appraisal practices and the formulation of related standards at the international level.
  
The issuance of this guideline adapts to the new economic development landscape, meets the requirements of the market economy and the development of the appraisal industry, and is of great significance for perfecting China’s system of asset valuation guidelines, guiding and standardizing asset valuation practices in related fields, and safeguarding both public interests and the legitimate rights and interests of all parties involved in asset valuation.

Asset Valuation Standards — Jewelry and accessories
Chapter 1 General Provisions
Article 1: In order to standardize the conduct of registered asset appraisers (jewelry) when performing jewelry and ornament appraisal services, and to safeguard the public interest as well as the legitimate rights and interests of all parties involved in asset appraisal, this Standard is formulated based on the “Asset Valuation Standards—Basic Standards.”
Article 2: For the purposes of these Guidelines, “jewelry and jewelry accessories” refer to raw materials, semi-finished products, and finished products made from gemstones and jade, and/or precious metals used in the manufacture of jewelry.
Article 3: The jewelry and gemstone appraisal referred to in this Standard refers to the act and process by which a certified asset appraiser (jewelry) conducts analysis and estimation of the value of jewelry and gemstones, and issues a professional opinion, based on the identification, grading, and analysis of such items in accordance with applicable laws, regulations, and asset appraisal standards.
Article 4: Registered asset appraisers (jewelry) performing jewelry and ornament appraisal services shall comply with these guidelines.
Article 5: Registered asset appraisers (jewelry) may refer to this standard when performing other services related to the valuation of jewelry and jewelry items.
Chapter Two   Basic requirements
Article 6: Asset appraisal institutions engaged in the business of jewelry and ornament appraisal shall hold an asset appraisal qualification certificate issued by the financial authorities, with “Jewelry and Ornament Art Appraisal” clearly indicated in their scope of business. Personnel signing jewelry and ornament appraisal reports shall hold the Certificate of China Registered Asset Appraiser (Jewelry).
Article 7: Registered asset appraisers (jewelry) performing jewelry and ornament appraisal services shall comply with relevant laws, regulations, basic standards for asset appraisal, and national standards pertaining to jewelry and ornaments, and shall also take into account the relevant provisions of other appraisal standards.
Article 8: A Certified Asset Appraiser (Jewelry) performing jewelry and ornament appraisal services shall possess the requisite professional competence. When lacking the relevant expertise and experience necessary to carry out a specific appraisal assignment, the appraiser may engage qualified experts to assist in the work; however, the appraiser must take all necessary measures to ensure the reasonableness of the experts’ work and assume responsibility for their performance.
Article 9: A registered asset appraiser (jewelry) performing jewelry and ornament appraisal services shall exercise due diligence and maintain the requisite professional care, and shall not base their appraisal conclusions on a pre-determined value.
Chapter 3: Operational Requirements
Article 10: When a Certified Asset Appraiser (Jewelry) undertakes jewelry and ornament appraisal services, they shall clearly specify the appraisal object, appraisal scope, appraisal purpose, base date for the appraisal, type of value, and intended users of the appraisal report.
Article 11: When a Certified Asset Appraiser (Jewelry) undertakes jewelry and ornament appraisal services, they shall, in accordance with the “Asset Valuation Standards—Valuation Procedures,” perform the basic valuation procedures and, taking into account the specific circumstances of the jewelry and ornament appraisal engagement, develop and implement appropriate, tailored valuation steps.
Article 12: When performing jewelry appraisal services, a registered asset appraiser (jewelry) shall physically verify the jewelry and clearly ascertain its current condition.
Article 13: When a Certified Appraiser (Jewelry) undertakes jewelry and gemstone appraisal services, they shall pay close attention to the ownership of the appraisal object and require the client or relevant parties to make a commitment regarding the ownership of the jewelry and gemstones. The Certified Appraiser (Jewelry) shall conduct necessary verification of documents related to the ownership of the jewelry and gemstones.
Article 14: When a Certified Asset Appraiser (Jewelry) undertakes jewelry appraisal services, they shall conduct identification and quality grading of the jewelry items. In identifying and grading the appraisal objects, they shall follow the applicable national standards and industry standards. If there are no corresponding national or industry grading standards, they may adopt universally recognized grading systems used in the jewelry industry both domestically and internationally, and clearly state this in the appraisal report.
A registered asset appraiser (jewelry) may rely on the appraisal and grading conclusions issued by a qualified jewelry quality inspection agency, but must verify such conclusions.
Article 15: When performing jewelry and gemstone appraisal services, a registered asset appraiser (jewelry) shall be aware that the value of the same piece of jewelry may vary across different markets, and shall determine an appropriate market level based on the specific circumstances of the appraisal object.
Article 16: A Certified Asset Appraiser (Jewelry) shall obtain market information and other relevant information about jewelry and precious ornaments through appropriate means and shall make necessary judgments regarding their authenticity and reliability.
Article 17: A Certified Asset Appraiser (Jewelry) shall, based on the specific circumstances of the appraisal object, reasonably select the content of information to be collected. Typically, attention is paid to...
The following aspects:
(1) The history, current status, and relevant supporting documentation of the assessment subject;
(2) The object’s past appraisal and transaction history;
(3) Market price information and transaction details for identical or similar jewelry and accessories;
(4) The market supply and demand relationship, degree of scarcity, and market prospects of the assessment object;
(5) Macroeconomic conditions that may affect the value of jewelry and gemstones;
(6) Other relevant information and materials.
Article 18: When performing jewelry and gemstone appraisal services, a registered asset appraiser (jewelry) shall take into account the impact of quality factors as well as other factors on the value of the appraisal object, such as origin (provenance), history, ownership by celebrities, craftsmanship by renowned masters, brand, and degree of rarity.
Article 19: When conducting jewelry and gemstone appraisal services, a registered asset appraiser (jewelry) may reasonably determine appraisal assumptions based on the purpose of the appraisal and the specific circumstances of the jewelry and gemstones, and shall disclose the impact of these assumptions on the appraisal conclusions.
Chapter 4: Evaluation Methods
Article 20: When performing jewelry and ornament appraisal services, a registered asset appraiser (jewelry) shall, based on relevant factors such as the appraisal object, type of value, and availability of data, analyze the applicability of the three fundamental asset appraisal methods—market approach, cost approach, and income approach—and appropriately select the appraisal method.
Article 21: When a Certified Asset Appraiser (Jewelry) uses the market approach, they shall:
(1) Clarify whether there is an open and active trading market, whether sufficient comparable sales data can be obtained, and the reliability of such data.
(2) Collect and assess the subject’s past transaction information as well as market information on transactions involving identical or similar jewelry and gemstones;
(3) Identify several identical or similar pieces of jewelry as reference items, and give full consideration to the comparability of their value factors.
(4) Based on the specific circumstances of the valuation object, identify an appropriate trading market that can serve as the basis for the valuation.
(5) Analyze and adjust the transaction information and relevant data on identical or similar jewelry items based on the differences between the appraisal object and the reference objects, as well as variations in market levels and market transaction conditions.
Article 22: When a Certified Asset Appraiser (Jewelry) uses the cost approach, it shall:
(1) Analyze whether the jewelry being evaluated can be replicated and reproduced, and consider the applicability of the cost approach based on these factors.
(2) Reasonably determine the constituent elements of replacement cost, clearly stating that the replacement cost of jewelry and ornaments includes material costs, manufacturing costs, relevant taxes and fees, reasonable profit, and other expenses.
(3) Appropriately select the type of replacement cost—namely, restoration replacement cost and modernization replacement cost.
(4) Reasonably determine physical depreciation, economic depreciation, and functional depreciation.
Article 23: When a Certified Asset Appraiser (Jewelry) uses the income approach, they shall:
(1) It is clear that the income approach is rarely used for valuing jewelry and jewelry accessories. The income approach is typically applicable only to valuation assignments involving jewelry and jewelry accessories that are engaged in ongoing operations such as leasing or exhibitions, and that possess independent earning capacity or whose earning capacity can be quantified.
(2) Reasonably determine the useful life and make realistic forecasts of future earnings;
(3) Reasonably determine the discount rate;
(4) Analyze the potential impact of the contents of legal documents such as lease agreements on the value of the appraised object.
Article 24: When a Certified Asset Appraiser (Jewelry) employs multiple appraisal methods for the same piece of jewelry, he or she shall analyze the various preliminary appraisal conclusions obtained and arrive at a reasonable final appraisal conclusion.
Chapter 5: Disclosure Requirements
Article 25: A registered asset appraiser (jewelry) performing jewelry and ornament appraisal services shall, after completing the necessary appraisal procedures, prepare an appraisal report in accordance with the “Asset Valuation Standards—Appraisal Report.” The appraisal report shall fully disclose all necessary information to enable users of the report to reasonably understand the appraisal conclusions.
Article 26: When preparing a jewelry appraisal report, a registered asset appraiser (jewelry) shall reflect the specific characteristics of jewelry and jewelry appraisal. Such reports typically include the following contents:
(1) An appropriate description of the appraisal object, including both the objective identifying characteristics and the value-contributing characteristics of the jewelry and ornaments. The content to be described should be determined based on the specific characteristics of the appraisal object and the particular circumstances of the appraisal engagement, with emphasis placed on highlighting those key characteristics that significantly influence the valuation conclusion.
(2) Types of Valuation for Jewelry and Gemstone Appraisals and Their Definitions.
(3) The description of the assessment procedure should reflect the physical inspection, identification, and grading processes applied to jewelry and ornaments.
(4) Are there any pledges or other restrictions on the jewelry and accessories?
Article 27: The appraisal report shall disclose any assumptions or limitations that directly affect the appraisal conclusion, and explain their impact on the value.
Article 28: A Certified Asset Appraiser (Jewelry) may, depending on the nature of the appraisal engagement, reasonably determine the level of detail to be included in the jewelry and jewelry accessories appraisal report.
Chapter VI Supplementary Provisions
　　 Article 29: These Guidelines shall take effect as of July 1, 2010.