2014 Year, China Association of Asset Appraisers (abbreviated as “CAAA”) Several documents were released, including the “Industry Talent Development and Team Building Plan,” the “Management Measures for Non-Practicing Members,” the “Operational Guidelines for Performance Evaluation of Fiscal Expenditures,” and the “Management Measures for Chief Appraisers.” In addition, multiple seminars were held to promote the industry’s development. Furthermore, the State Council issued a document abolishing the professional licensing requirement for registered asset appraisers, and the relevant authorities explicitly reclassified it as a proficiency examination.

　　 The China Appraisal Society releases the "Industry Talent Development and Team Building Plan."

　　February 2014 On the 29th, the China Association of Asset Appraisers released the “China Asset Valuation Industry Talent Development and Team Building Plan” (hereinafter referred to as the “Talent Plan”). The “Talent Plan” consists of four main parts: the importance and urgency of talent development and team building, guiding principles and development goals, key measures, and organizational implementation.

　　The “Talent Development Plan” sets forth the goals for talent cultivation and team building in China’s asset valuation industry over the next five years: accelerate the development of a talent pool for asset valuation that is comprehensive in its disciplines, well-structured, morally and professionally qualified, and courageous in innovation; maintain relatively rapid growth in the size of industry talent, further optimize the talent structure, continuously improve talent-development systems, and cultivate 300 professionals. 300 highly qualified, versatile professionals capable of providing comprehensive, high-end services; 300 senior management personnel from assessment agencies and industry associations; 5,000 core business specialists; 100,000 practicing professionals; and 300,000 operational staff.

　　The “Talent Development Plan” outlines the key measures for talent development and team building in the industry over the next five years, focusing on the industry’s guiding principles and development goals for talent. These measures cover eleven areas: innovating the industry’s talent admission mechanisms; improving the continuing education system; strengthening efforts to cultivate core business personnel; placing particular emphasis on developing high-end talent; enhancing the training of senior management personnel; promoting the development of reserve talent; leveraging the role of assessment institutions in talent development; establishing a competency evaluation mechanism; setting up a continuing education assessment mechanism; building an information-based service platform for industry talent development; and establishing mechanisms for identifying and recommending outstanding talent.

　　The “Talent Development Plan” is a guiding document that outlines the direction for talent development in China’s asset valuation industry for the current and coming period. Its issuance will help enhance the industry’s overall image and foster a cultural atmosphere within the industry that values, cherishes, and nurtures talent. It will also facilitate the integration of various training resources, harness the enthusiasm and initiative of all parties involved, and create synergies in talent development across the industry. It will help enhance the core competitiveness of the appraisal industry, effectively leverage the professional functions of appraisal, and improve the industry’s ability and level in serving economic and social development.

　　 The China Association of Asset Appraisers has released the "Administrative Measures for Non-Practicing Members of the China Association of Asset Appraisers."

　　March 5 On [date], the China Association of Asset Appraisers released the “Administrative Measures for Non-Practicing Members of the China Association of Asset Appraisers” (hereinafter referred to as the “Measures”).

　　The Measures are based on the Articles of Association of the China Association of Asset Appraisers and the Management Measures for Members of the China Association of Asset Appraisers. They draw on and incorporate effective membership management practices to standardize the management and services provided to non-practicing members. The main contents of the Measures include five chapters and twenty-nine articles, covering general provisions, admission of non-practicing members, rights and obligations of non-practicing members, daily management of non-practicing members, and supplementary provisions.

　　The Measures stipulate that individuals who have obtained the qualification of registered asset appraiser through examination or legal recognition, but are not currently practicing at an asset appraisal firm, and who acknowledge the Association’s articles of association and express their willingness to join the Association, may apply to become non-practicing members. The Measures specify in detail the eligibility criteria for non-practicing membership, the application procedures, as well as the rights enjoyed and obligations assumed by such members.

　　The Measures also stipulate that non-practicing members shall undergo regular inspections organized by the China Association of Asset Appraisers or local associations. Those who fail to pass the inspection must make rectifications within two years; if they still fail to meet the requirements after rectification, their non-practicing membership will be revoked. In addition, the Measures provide specific regulations for the day-to-day management of non-practicing members, including changes to their information, transfers across provinces, and withdrawal or expulsion from membership.

　　The China Association of Appraisers stated that the implementation of the Measures is of great significance for further improving the membership management model, perfecting the membership management system, and strengthening the construction of the association’s organizational framework. It is also highly important for enhancing the services and management of non-practicing members, as well as elevating their status and industry influence.

　　 The China Association of Evaluation released the "Operational Guidelines for Performance Evaluation of Fiscal Expenditures (Trial)." 》

　　April 30 On [date], the China Association of Public Accounting released the “Operational Guidelines for Performance Evaluation of Fiscal Expenditures (Project Expenditures) (Trial)” (hereinafter referred to as the “Operational Guidelines”), which will take effect on August 1.

　　According to the China Association of Asset Appraisers, as China’s fiscal system reform continues to deepen and fiscal budget management becomes increasingly stringent, performance evaluation of fiscal expenditures has drawn growing attention from all sectors of society. As an important professional force within the market economy system, the asset appraisal industry has actively leveraged its specialized strengths in recent years, significantly stepping up its efforts to support fiscal expenditure performance evaluation. Several local asset appraisal associations and appraisal firms have collaborated closely with fiscal departments or acted as third-party intermediaries, actively participating in fiscal expenditure performance evaluation work and providing expert opinions that have been duly recognized by the fiscal authorities.

　　To further guide and direct the evaluation industry in carrying out performance evaluations of fiscal expenditures, the China Association of Asset Appraisers has developed the “Operational Guidelines.” Based on relevant documents issued by the Ministry of Finance on performance evaluation and taking into account the practical needs of the appraisal profession, these guidelines provide relatively specific guidance on aspects including evaluation objects, evaluation content, evaluation procedures, evaluation plans, indicator systems, and the content of evaluation reports.

　　It is reported that the “Operational Guidelines” represent the first set of professional standards to regulate non-value-estimation-related business activities. These guidelines will play a crucial role in standardizing the conduct of fiscal expenditure performance evaluation within the appraisal industry, enhancing the industry’s overall capacity to participate in performance evaluations, and better serving fiscal reforms as well as contributing to social governance.

　　 The China Association of Appraisers has released the "Administrative Measures for Chief Appraisers."

　　July 10 On [date], the China Association of Appraisers released the “Administrative Measures for Chief Appraisers” (hereinafter referred to as the “Measures”), which will take effect on August 1. The “Measures” consist of five chapters and twenty-two articles, covering general provisions, the selection process for chief appraisers, the duties and powers of chief appraisers, the management of chief appraisers, and supplementary provisions.

　　The Measures clearly stipulate that the Chief Appraiser is the person ultimately responsible for the business quality control system within the top management of an asset appraisal agency. The Chief Appraiser is nominated by the top management of the asset appraisal agency and reports directly to them. In corporate-style asset appraisal agencies, this role is held by the board of directors (executive directors). Alternatively, the partner who executes partnership affairs in a partnership-based asset valuation firm, as the top-level management, bears ultimate responsibility for business quality control.

　　The Measures stipulate that the Chief Appraiser shall ensure the establishment of an internal quality control system within the institution, promote the implementation of the quality control system, supervise its operation, organize the formulation of technical standards for the institution, organize business training, and organize professional reviews of appraisal reports involving significant disputes. The appointment, promotion, transfer, and reward/punishment of practicing personnel at asset valuation agencies shall, prior to implementation, seek the opinion of the Chief Appraiser.

　　The Measures also specify the appointment procedures for chief appraisers, as approved by the China Appraisal Society (an organization qualified to provide securities appraisal and asset valuation services). Only after approval by the local association (a non-securities appraisal qualification asset appraisal agency) in the place of operation can the appraisal agency appoint or hire a chief appraiser. At the same time, it is stipulated that the chief appraiser must submit an annual report on his/her tenure and professional practice quality to either the China Appraisal Society or the local association.

　　The State Council has abolished the professional licensing requirement for registered asset appraisers.

　　July 22 On [date], the State Council issued the “Decision on Cancelling and Adjusting a Batch of Administrative Approval Items and Other Matters,” abolishing 11 occupational qualification licenses and certifications, including the certification for registered asset appraisers.

　　August 13 On [date], the Ministry of Human Resources and Social Security issued the “Notice on Reducing Issues Related to the Licensing and Recognition of Professional Qualifications” and the “Notice on Doing a Good Job in Following Up on the Cancellation of Certain Entry-Related Professional Qualifications by the State Council,” setting forth guiding principles for the follow-up work related to the cancellation of entry-related professional qualifications.

　　October 10 On [date], the Ministry of Human Resources and Social Security and the Ministry of Finance jointly issued the “Notice on Doing a Good Job in the Follow-up Work After the Cancellation of the Registered Asset Appraiser Professional Qualification,” outlining arrangements for policy alignment and transition, including: (1) Revising the Registered Asset Appraiser Professional Qualification to a competency-based professional qualification. (2) Individuals who have already obtained the Registered Asset Appraiser Professional Qualification Certificate may continue to use their existing qualification as a basis for appointment to corresponding professional and technical positions in the economic series. (3) The date of the 2014 National Unified Examination has been postponed to the first half of 2015; the specific examination dates will be announced separately. All candidates who have already registered for the 2014 Registered Asset Appraiser Examination are eligible to take the exam. The validity period of passing scores for all subjects taken prior to 2014 will be extended accordingly. (4) The Ministry of Human Resources and Social Security and the Ministry of Finance will promptly revise the original regulatory documents related to the Registered Asset Appraiser qualification. Once the newly revised regulatory documents are released, relevant work will be carried out in accordance with the new documents.

　　December 22 On [date], the Ministry of Finance issued the “Notice on Announcing the Cancellation and Adjustment of Administrative Approval Items and Other Matters,” confirming the cancellation of the licensing and certification requirements for the professional qualification of “Registered Asset Appraiser.” At the same time, it was decided to reclassify three pre-approval procedures for business registration—such as the “Approval for Establishment of Asset Valuation Agencies”—which had previously been implemented by the financial departments of provincial-level people’s governments, from pre-approval to post-approval.

　　 The 2014 Discussion Meeting on the Evaluation Standards of the China Appraisal Society was held in Beijing.

　　October 29 From the 28th to the 30th, the China Appraisal Society held the 2014 Assessment Standards Discussion Meeting in Beijing, reviewing draft proposals for nine ongoing projects and discussing how assessment standards can adapt to the shift in government management approaches. More than 40 experts from the Department of Asset Management and the Department of Finance of the Ministry of Finance, as well as appraisal institutions and academic institutions, attended the meeting.

　　Secretary-General Zhang Guochun issued specific instructions for the meeting, calling for the work on developing evaluation standards to actively adapt to the new situation brought about by the comprehensive deepening of reform and the reforms in the management systems and approaches of the asset valuation industry, and to proceed steadily.

　　At the seminar, experts conducted a thorough discussion on the frameworks, main contents, key points, and challenging aspects of various draft recommendations, and put forward specific revision suggestions on how to better align with regulatory and professional practice requirements and enhance operational feasibility. The experts believe that, first, we should continue to actively promote the enactment of evaluation legislation to elevate the legal status and social influence of evaluation standards; second, we should further strengthen the multi-party applicability of evaluation standards to meet the needs of regulators, clients, and appraisal institutions. Third, the evaluation criteria should reflect both professional standards and industry consensus.

　　For many years, the China Association of Asset Appraisers (CAAA), under the leadership of the Ministry of Finance, has been responsible for formulating and implementing appraisal standards. The Ministry of Finance and the CAAA have each established committees for appraisal standards, technical committees, and advisory committees. Members of these committees come from various sectors—including government agencies, industry associations, enterprises, educational institutions, research institutes, and the asset appraisal profession—thus ensuring broad representation. The CAAA stated that it will further enhance the effectiveness of its standard-setting mechanism, fully incorporate feedback from government agencies, report users, and practitioners in the appraisal field, and continue to push the development of appraisal standards to a new level.

　　 The 2014 China Assessment Forum actively discussed the development of a mixed-ownership economy.

　　November 26 On [date], the China Association of Asset Appraisers held the “2014 China Valuation Forum” in Beijing. The forum’s theme was “The Development of a Mixed-Ownership Economy and Asset Valuation.” Xu Hongcai, member of the Party Leadership Group and Assistant Minister of the Ministry of Finance, attended the forum and delivered a keynote speech. He Bangjing, President of the China Association of Asset Appraisers, also attended the forum and delivered a welcoming address. Secretary-General Zhang Guochun chaired the forum and gave the closing remarks.

　　In his speech titled “Promoting Innovation and Reform in Asset Valuation to Better Serve the Development of the Mixed-Ownership Economy,” Xu Hongcai pointed out that asset valuation is an important tool for optimizing the allocation of market resources, a vital force in maintaining the order of the market economy, and a foundational task for both the market economy and state-owned asset management. As reform continues to deepen comprehensively and the development of the mixed-ownership economy progresses, the asset valuation industry will have broader service areas and greater market potential, and will play an even more significant role.

　　In his speech titled “Consolidating Professional Consensus and Supporting the Mixed Ownership Economy,” Chairman He Bangjing pointed out that as the mixed-ownership economy continues to deepen, economic activities such as state-owned property transactions, circulation, mergers and acquisitions, and restructuring are on the rise. This presents a vast market opportunity for the valuation industry, driving the continuous expansion of the asset valuation service industry chain. As a result, asset valuation services will play an increasingly important role in standardizing trading order, optimizing resource allocation, and safeguarding the public interest.

　　In his concluding remarks at the forum, Secretary-General Zhang Guochun pointed out that the asset valuation industry must provide robust professional support for fiscal reform and the development of a mixed-ownership economy, and deliver high-quality professional services to improve the modern market system and promote the development of the socialist market economy.

　　Seven representatives from academia and the practicing profession also delivered speeches. Bian Ronghua, Han Liying, Shao Ronghua, and Zhang Jiangang, deputy secretaries-general of the China Appraisal Society, as well as officials from the finance departments of several provinces, municipalities, and autonomous regions— The director of the bureau attended the forum. Secretaries-general of local asset appraisal associations, representatives from relevant appraisal institutions, and representatives from universities also participated in the forum.