Chapter 1 General Provisions

Article 1: This Law is enacted to standardize asset valuation practices, protect the legitimate rights and interests of parties involved in asset valuation as well as the public interest, promote the healthy development of the asset valuation industry, and safeguard the order of the socialist market economy.

Article 2: The term “asset valuation” (hereinafter referred to as “valuation”) as used in this Law refers to the professional service activity in which appraisers and appraisal institutions assess and estimate real estate, movable property, intangible assets, enterprise value, asset losses, or other economic interests, and then sign and issue an appraisal report.

Article 3: Natural persons, legal entities, or other organizations that need to determine the value of an appraisal object may entrust an appraisal agency to conduct the appraisal.

Where state-owned assets and public interests are involved, and where laws and administrative regulations stipulate that an appraisal is required, an appraisal agency shall be commissioned to conduct the appraisal in accordance with the law.

Article 4: To practice as an appraiser, one must join an appraisal agency and may only practice at one appraisal agency.

Article 5: Appraisers in the course of practicing and appraisal institutions in conducting business shall comply with laws, administrative regulations, and appraisal standards, and adhere to the principles of independence, objectivity, and fairness.

Appraisers practicing in accordance with the law and appraisal institutions conducting business in compliance with the law are protected by law.

Article 6: The appraisal industry may establish industry associations in accordance with the law based on their respective professional fields, implement self-regulatory management, and accept supervision from the administrative departments responsible for asset appraisal.

Article 7: The administrative departments of asset valuation under the State Council shall, in accordance with their respective responsibilities, exercise supervision and management over the valuation industry.

The administrative departments for asset appraisal under the people's governments of provinces, autonomous regions, and municipalities directly under the central government shall, in accordance with their respective responsibilities, exercise supervision and management over the appraisal industry within their administrative areas.

Chapter 2: The Appraiser

Article 8: An appraiser refers to a professional who has obtained a qualification certificate in accordance with the law and joined an appraisal agency to engage in appraisal services.

The state establishes professional categories for appraisers based on the needs of economic and social development.

Article 9: The State shall implement a professional qualification management system for appraisers based on competency assessment. Where otherwise provided by law, the provisions of such laws shall prevail.

Article 10: The State shall implement a nationwide unified examination system for the professional qualification of appraisers.

The national unified examination for the professional qualification of appraisers is organized and implemented by the relevant nationwide appraisal industry associations. The examination procedures are formulated jointly by the human resources authority under the State Council and the administrative departments responsible for asset valuation under the State Council.

Article 11: Citizens who hold a diploma or higher from a higher education institution may voluntarily apply to take the nationwide unified examination for the professional qualification of appraiser. Those who pass the examination will be awarded a certificate of professional qualification as an appraiser by the relevant national-level appraisal industry association.

Article 12: The national assessment industry association shall publish on its website a list of individuals who have obtained the qualification certificate for appraisers and update this list in real time.

If an appraiser dies or loses civil capacity, the relevant national-level appraisal industry association shall revoke the appraiser’s professional qualification certificate and publish a public announcement to that effect.

Article 13: Individuals who have been subject to criminal punishment for intentional crimes or for negligent crimes committed while engaged in appraisal, financial, accounting, or auditing activities shall not engage in appraisal-related work within five years from the date on which the sentence has been fully served.

Article 14: Appraisers shall enjoy the following rights in their practice activities:

(1) Practice in accordance with the law and sign the assessment report;

(2) Request the client to provide relevant proof of ownership, financial and accounting information, and other materials, as well as any necessary assistance required to carry out a fair valuation procedure.

(3) Lawfully request from the relevant state authorities or other organizations the documents, certificates, and materials necessary for practicing the profession;

(4) Refuse any illegal interference by the client or other organizations or individuals in the appraisal process and appraisal results;

(5) Other rights prescribed by laws and administrative regulations.

Article 15: In the course of their practice, appraisers shall fulfill the following obligations:

(1) Be honest and trustworthy, and practice independently, objectively, and fairly in accordance with the law;

(2) Comply with evaluation guidelines, fulfill investigation duties, independently analyze and estimate, and practice diligently and prudently.

(3) Complete the prescribed continuing education to maintain and enhance professional competence.

(4) Verify and validate the authenticity, accuracy, and completeness of documents, certificates, and materials used in professional practice.

(5) Maintain confidentiality regarding state secrets, commercial secrets, and personal privacy learned during the course of practice;

(6) Individuals with a conflict of interest with the client, other relevant parties, or the appraisal object shall recuse themselves.

(7) Accept the self-regulatory management of industry associations and fulfill the obligations stipulated in the articles of association of industry associations.

(8) Other obligations prescribed by laws and administrative regulations.

Article 16: Appraisers shall not engage in any of the following behaviors during their professional practice:

(1) Privately accepting commissions and collecting fees;

(2) Practicing simultaneously at two or more appraisal institutions;

(3) Soliciting business through improper means such as deception, enticement, coercion, or disparaging or defaming other appraisers;

(4) Permitting others to practice in one’s own name, or impersonating others to practice;

(5) Signing appraisal reports for matters that I have not handled;

(6) Soliciting, accepting, or indirectly soliciting or accepting remuneration, property, or other improper benefits beyond those stipulated in the contract;

(7) Signing false appraisal reports or appraisal reports with significant omissions;

(8) Other acts that violate laws and administrative regulations.

Chapter 3: Assessment Agencies

Article 17: The establishment of an assessment agency shall, in accordance with the law, adopt either a partnership or a corporate structure.

To establish an appraisal agency in the form of a partnership, there must be at least two appraisers. More than two-thirds of its partners should be appraisers with at least three years of professional experience and who have not been subject to any suspension of practice penalties in the past three years.

To establish an appraisal agency in the form of a corporation, there must be more than eight appraisers and more than two shareholders, among whom more than two-thirds must be appraisers with at least three years of professional experience and who have not been subject to any suspension of practice penalties in the past three years.

If the valuation firm has two partners or shareholders, both partners or shareholders must be appraisers with more than three years of professional experience and who have not been subject to a suspension of practice in the past three years.

Article 18: To establish an appraisal agency, one shall apply for registration with the administration for industry and commerce. Within thirty days from the date of obtaining the business license, the appraisal agency shall file a record with the relevant administrative department responsible for asset appraisal. The relevant administrative department responsible for asset appraisal shall promptly announce to the public the filing status of appraisal agencies. If it is discovered that an appraisal agency does not meet the conditions stipulated in this Law, the department shall notify the administration for industry and commerce to take legal action accordingly.

Article 19: Assessment agencies shall conduct their business independently, objectively, and fairly in accordance with the law, establish and improve quality control and internal management systems, and ensure that assessment reports are objective, truthful, and reasonable.

The assessment agency shall, in accordance with the law, accept supervision and inspection and truthfully provide assessment files as well as relevant information.

Article 20: If the client refuses to provide the ownership certificates, financial and accounting information, and other materials required for performing the appraisal services, the appraisal agency shall have the right, in accordance with the law, to refuse the client’s request to perform the contract.

Article 21: If the client requests the issuance of a false appraisal report or engages in other illegal interference with the appraisal results, the appraisal agency shall have the right to terminate the contract.

Article 22: Assessment agencies shall not engage in the following activities:

(1) Taking advantage of the opportunity to conduct business to seek improper benefits;

(2) Allowing other institutions to conduct business in the name of this institution, or to impersonate other institutions to conduct business;

(3) Soliciting business through improper means such as malicious price dumping, paying kickbacks, making false advertisements, or disparaging or defaming other appraisal agencies;

(4) Accepting business involving interests that are favorable to oneself;

(5) Accepting mandates from both parties involved in a conflict of interest to conduct an assessment of the same appraisal object;

(6) Issuing a false appraisal report or an appraisal report with significant omissions;

(7) Hiring personnel who do not meet the requirements stipulated in this Law to engage in appraisal services;

(8) Other acts that violate laws and administrative regulations.

Article 23: Assessment agencies shall establish an operational risk fund in accordance with the prescribed regulations.

Chapter 4: Assessment Procedures

Article 24: The client has the right to independently select an appraisal agency that complies with the provisions of this Law; no organization or individual may illegally impose restrictions on or interfere with such selection.

If an assessment is conducted pursuant to Paragraph 2 of Article 3 of this Law, the assessment agency shall be selected through a public process in accordance with the law.

Article 25: The entrusting party shall enter into a commission contract with the appraisal agency, specifying the rights and obligations of both parties.

The client shall pay the appraisal agency the fees as stipulated in the contract and shall not solicit, accept, or indirectly solicit or accept kickbacks.

The entrusting party shall be responsible for the authenticity, completeness, and legality of the ownership certificates, financial accounting information, and other materials it provides.

Article 26: For appraisal services that have been accepted, the appraisal agency shall assign two or more appraisers to carry them out.

The client has the right to request that appraisers who have conflicts of interest with other relevant parties or the appraisal object recuse themselves.

Article 27: The appraiser shall, based on the specific circumstances of the appraisal engagement, conduct on-site investigations of the appraisal object, collect proof of ownership, financial and accounting information, and other relevant materials, and verify and validate such materials. On the basis of analysis, summarization, and organization, the appraiser shall establish the foundation for the appraisal.

Article 28: The appraiser shall analyze the applicability of the relevant appraisal methods. Except where the appraisal standards mandate the selection of only one appraisal method, the appraiser shall appropriately select two or more appraisal methods. Based on a comprehensive comparison, the appraiser shall arrive at an appraisal conclusion and prepare an appraisal report.

The assessment agency shall conduct an internal review of the assessment report.

Article 29: The appraisal report shall be signed by two or more appraisers and bear the official seal of the appraisal agency. Appraisers and appraisal agencies shall assume legal responsibility for the appraisal reports they sign and issue.

The client shall not collude with or instigate the appraiser or the appraisal agency to sign or issue a false appraisal report.

Article 30: The retention period for assessment files shall be no less than fifteen years.

Article 31: If the client has objections to the appraisal report, they may request the appraisal agency to provide an explanation.

Article 32: If the client believes that an appraiser has engaged in illegal practice or that an appraisal agency has conducted business illegally, the client may file a complaint or report to the relevant administrative department for asset appraisal or to the industry association. The relevant administrative department for asset appraisal or the industry association shall promptly investigate and handle such complaints or reports.

Article 33: The entrusting party or other users of the appraisal report shall use the appraisal report in accordance with the law and within the scope of use specified in the appraisal report.

If the client or other user of the appraisal report violates the provisions of the preceding paragraph in using the appraisal report, the appraiser and the appraisal agency shall not be held liable.

Chapter 5: Industry Associations

Article 34: The appraisal industry association is a self-regulatory organization for appraisers and appraisal institutions, and it conducts self-regulatory management in accordance with laws, administrative regulations, and its articles of association.

The appraisal industry shall establish a national appraisal industry association based on professional fields, and set up local appraisal industry associations as needed.

Article 35: The articles of association of the appraisal industry association shall be formulated by the Members’ Congress, submitted to the registration and administration authority for approval, and filed with the relevant administrative departments responsible for asset appraisal.

Article 36: Appraisers and appraisal institutions shall join the relevant appraisal industry associations, equally enjoy the rights stipulated in the articles of association, and fulfill the obligations prescribed therein.

Article 37: The assessment industry association shall perform the following duties:

(1) Formulate self-regulatory management measures for members and implement self-regulatory management over members;

(2) Formulate practice guidelines and professional ethics guidelines based on the fundamental assessment standards;

(3) Organize and implement the professional qualification examination for appraisers;

(4) Organize and carry out continuing education for members;

(5) Establish member credit profiles, recording members’ compliance with laws, administrative regulations, and evaluation standards in these profiles and making them publicly available.

(6) Supervise and inspect, in accordance with the law, the establishment of professional risk funds by members;

(7) Accepting complaints and reports against members, handling member appeals, and mediating disputes arising from members’ professional practice.

(8) Supervise and manage the professional conduct of members, regularly inspect evaluation reports signed or issued by members, impose rewards and punishments on members in accordance with the articles of association, and promptly report the outcomes of such rewards and punishments to the relevant administrative authorities for asset valuation.

(9) Ensure members practice law in accordance with the law and safeguard their legitimate rights and interests;

(10) Other duties prescribed by laws, administrative regulations, and the articles of association.

The duties stipulated in the second and third items of the preceding paragraph may be performed only by national-level assessment industry associations.

Article 38: The relevant assessment industry associations shall establish mechanisms for communication, collaboration, and information sharing, formulate common codes of conduct as needed, and promote the healthy and orderly development of the assessment industry.

Article 39: The standards for membership fees collected by assessment industry associations shall be adopted by the Members’ Congress and made publicly available. It is prohibited to make the amount of membership fees paid by members a condition for holding office within the industry association.

The collection and use of membership fees shall be subject to the supervision of the Members’ Congress and the relevant administrative authorities responsible for asset evaluation. No organization or individual may encroach upon, misappropriate, or divert these funds.

Chapter Six: Administrative Supervision

Article 40: The administrative department for asset valuation under the State Council shall organize the formulation of basic valuation standards as well as management measures for valuation agencies and valuation industry associations.

Article 41: The administrative departments responsible for asset valuation under the people's governments at or above the provincial level shall, in accordance with their respective duties, be responsible for supervising and administering the valuation industry and imposing lawful penalties on illegal acts committed by appraisers and valuation agencies.

Article 42: The administrative department for asset valuation shall conduct supervision and inspection over the relevant asset valuation industry associations. Any issues identified during inspections, as well as complaints and reports against the associations, shall be promptly investigated and addressed.

Article 43: The administrative department in charge of asset valuation shall not impose unreasonable restrictions on the business activities legally conducted by valuation agencies.

Article 44: The administrative department responsible for asset valuation shall not have any personnel or financial ties with valuation industry associations or valuation agencies, nor shall it use its official authority to solicit business for valuation agencies.

Chapter 7: Legal Liability

Article 45: Any entity that violates the provisions of this Law by establishing an appraisal agency without undergoing industrial and commercial registration and engaging in appraisal activities shall be ordered by the administrative department for industry and commerce to cease its illegal activities. If there are any illegal gains, such gains shall be confiscated, and a fine ranging from one to five times the amount of the illegal gains shall also be imposed.

Article 46: If an appraiser violates the provisions of this Law and falls under any of the following circumstances, the relevant administrative department for asset appraisal shall issue a warning and may order the appraiser to suspend practice for a period of more than three months but less than six months; any illegally obtained gains shall be confiscated. In cases of serious violations, the appraiser may be ordered to suspend practice for a period of more than six months but less than five years. If the violation constitutes a crime, criminal liability shall be pursued in accordance with the law.

(1) Privately accepting commissions and collecting fees;

(2) Practicing simultaneously at two or more appraisal institutions;

(3) Soliciting business through improper means such as deception, enticement, coercion, or disparaging or defaming other appraisers;

(4) Permitting others to practice in one’s own name, or practicing under the guise of another person’s name;

(5) Signing appraisal reports for matters that I have not handled;

(6) Soliciting, accepting, or indirectly soliciting or accepting remuneration, property, or seeking other improper benefits beyond those stipulated in the contract.

Article 47: If an appraiser violates the provisions of this Law by signing a false appraisal report or an appraisal report containing significant omissions, the relevant administrative department for asset appraisal shall order the appraiser to cease practicing for a period of more than six months but less than one year. Any illegally obtained gains shall be confiscated. In cases of serious violations, the appraiser may be ordered to cease practicing for a period of more than one year but less than five years. If the violation constitutes a crime, criminal liability shall be pursued in accordance with the law.

Article 48: If an appraisal agency violates the provisions of this Law and falls under any of the following circumstances, it shall receive a warning from the relevant administrative department for asset appraisal, and may be ordered to suspend business operations for a period ranging from one month to six months. Any illegal gains shall be confiscated, and the agency shall also be fined an amount between one and five times the amount of such illegal gains. In cases of serious violations, the administration for industry and commerce shall revoke its business license. If the violation constitutes a crime, criminal liability shall be pursued in accordance with the law.

(1) Seeking improper benefits by taking advantage of the opportunity to conduct business;

(2) Permitting other institutions to conduct business in the name of this institution, or using the name of another institution to conduct business fraudulently;

(3) Soliciting business through improper means such as malicious price dumping, paying kickbacks, making false advertisements, or disparaging or defaming other appraisal agencies;

(4) Accepting business involving interests that are favorable to oneself;

(5) Accepting mandates from both parties involved in a conflict of interest and conducting an assessment on the same appraisal object;

(6) Failure to retain assessment files within the time limits prescribed by this Law;

(7) Hiring personnel who do not meet the requirements stipulated in this Law to engage in appraisal services.

In violation of the provisions of this Law, if an appraisal agency is established without filing with the relevant administrative department for asset appraisal, the relevant administrative department for asset appraisal shall order it to make corrections. If the agency refuses to make corrections, it shall be fined between 10,000 and 50,000 yuan.

Article 49: If an appraisal agency violates the provisions of this Law by issuing a false appraisal report or an appraisal report containing significant omissions, the relevant administrative department for asset appraisal shall order it to suspend business operations for a period of more than three months but less than six months. Any illegal gains shall be confiscated, and the agency shall also be fined an amount ranging from one to five times the amount of such illegal gains. In cases of serious violations, the administration for industry and commerce shall revoke its business license. If the violation constitutes a crime, criminal liability shall be pursued in accordance with the law.

Article 50: If an appraiser or an appraisal agency commits any of the illegal acts specified in Articles 46 through 49 of this Law, the relevant administrative department for asset appraisal shall notify the relevant appraisal industry association of the penalty imposed. The industry association shall record such penalties in the credit file and make them publicly available to society. If an appraiser’s violations of professional ethics accumulate to three times within one year, the competent authority may order him or her to suspend practice for a period ranging from more than one year to less than five years.

Article 51: If an appraiser or an appraisal agency violates the provisions of this Law and causes losses to the client or other relevant parties, it shall bear compensation liability in accordance with the law.

Article 52: In violation of the provisions of Article 3, Paragraph 2 of this Law, if an entity fails to commission an appraisal agency for appraisal when such commission is required, the relevant authorities shall order it to make corrections. If the entity refuses to make corrections, it shall be fined between 100,000 and 500,000 yuan. In cases of serious violations, the directly responsible principal personnel and other directly liable personnel shall be disciplined in accordance with the law. If losses are caused, the entity shall bear compensation liability in accordance with the law. If the violation constitutes a crime, criminal liability shall be pursued in accordance with the law.

Article 53: For appraisals conducted in accordance with Paragraph 2 of Article 3 of this Law, if the client violates the provisions of this Law and falls under any of the following circumstances, the relevant administrative department for asset appraisal, together with other relevant departments, shall order rectification. If the client refuses to make corrections, a fine of between 100,000 yuan and 500,000 yuan shall be imposed; any illegally obtained gains shall be confiscated. In cases of serious violations, direct responsible supervisors and other directly liable personnel shall be disciplined in accordance with the law. If losses are caused, the client shall bear compensation liability in accordance with the law. If the violation constitutes a crime, criminal liability shall be pursued in accordance with the law.

(1) Failure to select an appraisal agency through a publicly announced procedure as required by law;

(2) Soliciting, accepting, or disguisedly soliciting or accepting kickbacks;

(3) Colluding with or instigating appraisers and appraisal agencies to sign and issue false appraisal reports;

(4) Failing to provide the assessment agency with true and accurate ownership certificates, financial accounting information, and other relevant materials;

(5) Failure to use the appraisal report in accordance with legal provisions and the terms of the engagement contract.

If a principal who is not covered by the preceding provision violates the provisions of this Law and causes damage to others, they shall bear compensation liability in accordance with the law.

Article 54: If staff members of relevant administrative departments or assessment industry associations violate the provisions of this Law by abusing their authority, neglecting their duties, or engaging in corruption and malpractice, they shall be subject to disciplinary action in accordance with the law; if their actions constitute a crime, they shall be held criminally liable in accordance with the law.

Chapter 8: Supplementary Provisions

Article 55: If laws and administrative regulations have separate provisions on assessment management, such provisions shall prevail.

Article 56: This Law shall come into force as of [Year] [Month] [Day].