In accordance with the requirements of the 13th Five-Year Plan for National Economic and Social Development of the People’s Republic of China and the national fiscal “13th Five-Year” Plan, and in order to thoroughly implement the Asset Valuation Law, scientifically plan and comprehensively guide the development of the asset valuation industry during the 13th Five-Year period, and better serve the country’s economic and social development as well as fiscal and tax reforms, the China Association of Asset Appraisers formulated and issued the “Development Plan for the Asset Valuation Industry during the 13th Five-Year Period” (hereinafter referred to as the “Plan”) on June 19, 2017. Recently, a responsible official from the China Association of Asset Appraisers answered questions from a reporter of the China Accounting Journal regarding the formulation and release of the “Plan.”

Q: Could you please explain the significance of developing this “Plan”?

Answer: The “13th Five-Year Plan” period marks the decisive stage for China to fully build a moderately prosperous society and achieve the first centenary goal of the “Two Centenary Goals.” At the same time, under the backdrop of an increasingly complex domestic and international development environment, China’s development during the “13th Five-Year Plan” period still enjoys an important strategic opportunity window offering great potential. However, it also faces severe challenges, including the overlapping of numerous contradictions and a growing number of hidden risks. In this new context, both allowing the market to play a decisive role in resource allocation and better leveraging the role of the government require professional support from the asset valuation industry. As such, the service scope and market potential of asset valuation are virtually limitless. Formulating a development plan for the asset valuation industry during the “13th Five-Year Plan” period—clarifying the industry’s strategic vision, defining guiding principles, basic tenets, target requirements, and key tasks, and drawing up a comprehensive blueprint for the industry’s development over the coming period—is critical to ensuring the sustained and healthy development of the asset valuation sector as a whole.

Q: Could you please introduce the process of drafting and formulating the “Plan”?

Answer: The Secretariat of the China Association of Asset Appraisers attaches great importance to the development of the “Plan.” With the care and support of the Association’s president, work on drafting the “Plan” was launched in late February this year. Initially, the overall framework of the “Plan” was established, and a symposium on the Development Plan for the Asset Valuation Industry during the 13th Five-Year Period was organized to solicit comments and suggestions on the drafting process. Following the symposium, the Secretariat promptly began studying and drafting the outline of the “Plan.” In mid-March, the Secretariat swiftly completed the first draft of the “Plan.” In late March, opinions and suggestions were solicited from the President’s Committee, members of the Secretariat’s leadership team, and various departments. In early April, the first draft of the “Plan” was submitted to the Secretariat’s Secretary-General Meeting for study and discussion, resulting in a draft for public comment. This draft was published on the CAAV website in mid-April. From mid-April to mid-May, the president and the secretary-general separately conducted field investigations in several provinces and regions to gather input on the formulation of the “Plan.”

Based on feedback from all quarters, there is unanimous agreement that the “Plan” serves as a guiding action blueprint for the future development of the appraisal industry, playing a strong role in providing both strategic direction and guidance. Everyone looks forward to the swift issuance of the industry development plan. Overall, participants generally believe that the draft “Plan” boasts a rigorous and well-structured framework, covers a broad range of topics with rich content, sets scientifically sound and reasonable basic objectives, features encouraging quantitative indicators, and outlines practical and feasible tasks. It not only objectively reflects the trends driving industry development but also demonstrates a high degree of foresight, making it a relatively mature and down-to-earth development plan. Meanwhile, during the consultation process, various stakeholders have put forward many valuable opinions and suggestions. The Secretariat has carefully studied and sorted through these comments and suggestions, making every effort to incorporate those that are feasible and appropriate.

From late May to early June, after being reviewed at the Secretary-General’s Meeting and approved by the Ministry of Finance, the draft “Plan” was deliberated and adopted by the 5th Executive Council of the China Appraisal Society.

On June 19, the China Appraisal Society officially issued the “Plan.”

Q: What are the overall considerations and main contents behind the formulation of the “Plan”?

Answer: The drafting of the “Plan” has fully taken into account the trends and requirements for the development of the asset valuation industry during the 13th Five-Year Plan period, while also paying close attention to the following principles: First, we have adhered to the integration of goal-oriented and problem-oriented approaches—starting from achieving the fundamental goals of industry development while simultaneously focusing on the pressing issues that need to be addressed. We have clearly defined the tasks to be accomplished during the 13th Five-Year Plan period and specified the paths and methods for overcoming these challenges. Second, we have insisted on balancing both domestic and international markets, making full use of both domestic and international resources, proactively responding to changes in the external environment facing the industry, and jointly building and sharing the fruits of economic globalization. Third, we have upheld the combination of strategic vision and operational feasibility—harmonizing overall planning with specific measures. This approach not only reflects the Plan’s strategic nature, guiding role, and overarching principles but also highlights its binding, operational, and concrete features, ensuring a blend of abstract vision and practical detail, with particular emphasis on refining as much as possible those aspects that can be detailed.

The “Plan” is structurally divided into four parts. The first part examines the current status of industry development and the challenges it faces. It reviews the major achievements made in industry development since the 12th Five-Year Plan period, identifies the difficulties and problems currently confronting the industry, and analyzes both domestic and international circumstances shaping its future trajectory. The second part outlines the guiding principles and fundamental tenets for industry development. It sets forth the guiding ideology for the development of the asset valuation industry during the 13th Five-Year Plan period and emphasizes adherence to six key principles: upholding Party leadership, governing the industry according to law, pursuing steady progress while seeking innovation, driving development through innovation, putting people first, and promoting open cooperation. The third part defines the basic objectives and main tasks for industry development. It proposes development goals from five perspectives: strengthening legal framework construction, enhancing market development, fostering talent development, improving institutional capacity, and optimizing the professional practice environment. Additionally, it identifies nine key tasks and specific measures for industry development, covering areas such as strengthening Party building within the industry, building a rule-of-law-based industry, promoting innovative development, advancing scientific institutional development, cultivating a strong talent pool, reinforcing self-regulatory oversight, accelerating information technology development, boosting internationalization, and strengthening industry organization building. The fourth part addresses the safeguards for implementing the “Plan,” setting forth requirements for strengthening leadership, clarifying responsibilities, and providing policy support.

Question: What are the specific goals for the development of the asset valuation industry during the 13th Five-Year Plan period?

Answer: The “Plan” sets forth five fundamental objectives for the development of the industry. First, in terms of the legal and institutional framework, we aim to establish a comprehensive, systematic, and well-rounded system of asset valuation laws and regulations, led by the “Asset Valuation Law” and comprising relevant laws, administrative regulations, departmental rules, other normative documents, and industry self-regulatory management systems. This will foster synergy between administrative and self-regulatory oversight, ensuring the effective implementation of all applicable legal and regulatory frameworks. Second, in the area of professional services, we will actively cultivate new drivers for industry growth, shifting from reliance primarily on policy measures toward tapping into the full potential of market demand. We will promote both vertical integration and horizontal expansion of business chains, with total industry revenue reaching approximately 18 billion yuan by 2020. Third, regarding the industry’s talent pool, we will implement a talent-priority development strategy, accelerating the formation of a large-scale, rationally structured, and high-quality workforce in the asset valuation sector. By 2020, we aim to have more than 50,000 certified asset valuers and over 150,000 practitioners in the industry. Fourth, concerning asset valuation institutions, we will adopt a coordinated approach tailored to different types of institutions, continuously optimizing their spatial distribution and fostering a sound pattern of scientific and harmonious development among large, medium, and small valuation firms. Fifth, in terms of the professional practice environment, we will intensify support for the development of the asset valuation industry, promoting the dismantling of professional monopolies and market barriers, and striving to create a unified, open, competitive, and orderly valuation market.

Q: To ensure the implementation of the Plan, what measures will be taken from which aspects?

Answer: The blueprint has already been drawn up; the key now lies in implementation. All levels of associations, appraisal institutions, and the broader workforce must regard the implementation of the “Plan” as a crucial component of industry development during the 13th Five-Year Period. They should unify their thinking, enhance their awareness, and earnestly carry out the following tasks: First, we must strengthen organization and leadership. Associations at all levels must attach great importance to this and reinforce organizational leadership over the implementation of the “Plan.” They should actively seek attention and support from fiscal authorities and closely cooperate with these authorities to fulfill their administrative oversight responsibilities in the asset appraisal industry. Appraisal institutions and the wider workforce should take the goals of the “Plan” as their guiding principle, fully demonstrate their sense of ownership and proactive spirit, pool the industry’s professional expertise and collective wisdom, and create a prosperous environment characterized by collaborative efforts and shared benefits across the entire industry.

Second, it is essential to clearly define the division of labor and responsibilities. Associations at all levels should strengthen their guidance and coordination in implementing the “Plan.” For the binding indicators, key projects, major policies, and critical reform tasks identified in the “Plan,” specific implementation plans must be formulated, with clearly defined responsible entities and implementation timelines, to ensure that these tasks are completed on schedule. Local associations may, based on the “Plan” and taking into account local conditions, develop regional industry development plans of their own.

Third, we must intensify policy support. Associations at all levels should actively promote and cooperate with government departments in formulating and introducing policies and measures to support the development of the industry. They should conduct tailored research and develop supportive measures that guide the scientific development of assessment institutions, and they should strengthen financial guarantees for work across various sectors of the industry. Assessment institutions, in turn, should increase their financial investment in areas such as new market research, talent development, theoretical research, and information technology infrastructure.