Beijing, August 24—Our reporter Chen Liping reports that the draft Asset Valuation Law was submitted today for the third review at the 16th Session of the Standing Committee of the 12th National People's Congress. The new draft does not yet alter the current system under which the asset valuation industry is managed separately by different authorities.

The original draft stipulated that the State Council would establish a coordination and cooperation mechanism for the asset valuation industry, led by the financial authorities, responsible for coordinating and guiding the development of the valuation industry.

Some members of the Standing Committee, government departments, industry associations, and the general public have suggested that, under the current management system, the assessment of the industry is overseen separately by five different departments—namely, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Housing and Urban-Rural Development, the Ministry of Commerce, and the China Insurance Regulatory Commission. They recommend instead clearly assigning responsibility for oversight to each department according to its respective duties.

After careful deliberation, the Legal Committee of the National People's Congress believes that establishing a coordination and cooperation mechanism for the management of the appraisal industry would help address the issue of multiple authorities exercising overlapping oversight. However, given the significant differences in opinion among relevant departments at present, and considering that although various appraisal specialties all belong to the broader appraisal industry, they each possess their own distinct professional characteristics, we recommend—so as to achieve the broadest possible consensus—that the current separate management system be retained for the time being and that the provision for establishing a coordination and cooperation mechanism be deleted.

The appraiser shall be independent, objective, and impartial.

This newspaper, Beijing, August 24—Reporter Chen Liping: The draft of the new Asset Valuation Law stipulates that appraisers in their practice and valuation agencies in conducting business shall adhere to the principles of independence, objectivity, and fairness.

The original draft stipulates that appraisers and appraisal institutions must comply with laws, administrative regulations, and appraisal standards when practicing their profession.

Some members of the Standing Committee pointed out that appraisers and appraisal institutions, as professional personnel and entities, should not only comply with laws, regulations, and appraisal standards but also adhere to the professional principles of independence, objectivity, and fairness. They suggested explicitly stating this requirement. After careful deliberation, the Legal Committee of the National People's Congress recommends amending the above provision to read: "Appraisers practicing their profession and appraisal institutions conducting business shall comply with laws, administrative regulations, and appraisal standards, and shall adhere to the principles of independence, objectivity, and fairness."

Delete the provisions on the registration of appraiser practice.

Beijing, August 24—Our reporter Chen Liping reports: The draft of the new Asset Valuation Law has removed the provisions concerning the registration of practicing appraisers.

The original draft stipulated that the state would implement a registration system for appraisers, under which no one could practice without being registered. Some departments and industry associations pointed out that the State Council has already abolished the previous mandatory qualification requirements for appraisers, replacing them with a competency-based management system for professional qualifications. Only the qualification requirement for real estate appraisers has been retained, as it is grounded in the Urban Real Estate Management Law. Therefore, the draft should be aligned with this reform initiative. Some members of the Standing Committee suggested that since appraisers provide specialized services, even after abolishing the mandatory qualification requirement, there should still be certain standards for those permitted to engage in appraisal activities. At the same time, management of the appraiser qualification examination should be strengthened, with clear provisions regarding the organization of the examination and the formulation of examination procedures.

After careful deliberation, the Legal Committee of the National People's Congress recommends the following amendments: First, the chapter title of Chapter Two should be changed from “Registered Appraisers” to “Appraisers,” and the corresponding provisions regarding the registration of appraiser practice should be deleted. It should be clearly stated that the state will adopt a competency-based professional qualification management system for appraisers, with any specific provisions under law taking precedence as required. Second, it should be clarified that the nationwide unified examination for appraiser qualifications will be organized and administered by the relevant national-level appraisal industry associations, and the examination procedures will be formulated jointly by the department in charge of human resources under the State Council and the administrative authorities for asset valuation under the State Council. Third, it should be specified that citizens holding an associate degree or higher from a higher education institution may voluntarily apply to take the nationwide unified examination for appraiser qualifications; those who pass the examination will be awarded an appraiser qualification certificate by the relevant national-level appraisal industry association. Fourth, it should be clearly stipulated that individuals who have been criminally punished for intentional crimes or for negligent crimes committed while engaged in appraisal, financial, accounting, or auditing activities—and whose sentence has not yet been fully served for a period of less than five years from the date of completion of the sentence—shall be prohibited from engaging in appraisal-related work.

Improve regulations on the legal responsibilities of appraisers.

Beijing, August 24—This newspaper reports that, according to the draft of the new Asset Valuation Law, appraisers and appraisal institutions are prohibited from signing or issuing false appraisal reports or appraisal reports containing significant omissions. At the same time, corresponding amendments have been made to the legal liabilities.

The original draft stipulates that appraisers and appraisal agencies shall not sign or issue false appraisal reports.

Some members of the Standing Committee pointed out that simply prohibiting the signing or issuance of false appraisal reports is not comprehensive enough; it would also be necessary to add a provision prohibiting the signing or issuance of appraisal reports containing significant omissions, so as to align with relevant provisions in laws such as the Company Law.

After careful deliberation, the Legal Committee of the National People's Congress recommends making the above-mentioned amendments to the draft.

Proposed additions to the provisions regarding assessment procedures

The draft of the new Asset Valuation Law adds provisions regarding valuation procedures.

During the fourth session of the Standing Committee of the 12th National People's Congress, as the draft Asset Valuation Law was reviewed once again, some members of the Standing Committee pointed out that the valuation procedures are crucial for ensuring that valuation activities are conducted in a scientific and impartial manner. They suggested further refining the regulatory provisions on valuation procedures in Chapter Four and changing the chapter’s title to “Valuation Procedures.”

The Legal Committee of the National People's Congress recommends making corresponding amendments to the title of Chapter Four and adding the following procedural provisions: First, for appraisal services that have been accepted, the appraisal agency shall assign at least two appraisers to handle each case. Second, based on the specific circumstances of the appraisal engagement, appraisers shall conduct on-site investigations of the appraisal objects, 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, they shall establish the foundation for the appraisal. Third, appraisers shall analyze the applicability of various appraisal methods; except where the appraisal standards mandate the selection of only one appraisal method, they shall appropriately select two or more appraisal methods and, on the basis of comprehensive comparison, arrive at an appraisal conclusion and prepare an appraisal report. Fourth, the appraisal agency shall conduct a content review of the appraisal reports.