Recently, the Ministry of Finance issued the "Measures for Fiscal Supervision and Administration of the Asset Valuation Industry," clearly including asset valuation professionals and asset valuation associations within the scope of regulatory oversight. These measures clarify the operational rules for various entities involved in the asset valuation industry, marking the establishment of a new system of supervision and administration for China's asset valuation sector.

　　A relevant official from the Ministry of Finance stated that the issuance of these measures aims to implement the requirements set forth in the Asset Valuation Law—specifically, shifting the focus of supervision and management of the asset valuation industry from ex-ante regulation to ongoing and ex-post regulation—and thereby reflect... “ Streamline administration and delegate power, while combining deregulation with regulation. ” the spirit of reform and “ Neither lacking nor overstepping one’s role. ” The regulatory principles are of great significance for enhancing the regulatory standards of the asset valuation industry and promoting its development.

　　The measures establish a new management principle that integrates administrative supervision, industry self-regulation, and institutional autonomous management. They clearly define the supervisory content and requirements for appraisal professionals, appraisal institutions, and appraisal associations; delineate the division of administrative supervisory responsibilities and functions among fiscal departments at various levels; and refine the relevant provisions on legal liabilities for asset appraisals. At the same time, specific regulations have been introduced to shift the establishment of asset appraisal institutions and their branches from an approval-based system to a filing-based management system.

　　The introduction of this measure has established institutional safeguards for the healthy development of the asset valuation industry. According to reports, the measure clearly defines how valuation professionals, valuation firms, and valuation associations should protect their rights, fulfill their obligations, and assume their responsibilities. This will help stimulate the creativity and entrepreneurial enthusiasm of all valuation professionals and promote the industry's commitment to practice. “ Mass entrepreneurship, mass innovation. ” the vitality of the profession. The Measures clearly define the scope of self-regulation and filing-based management for asset valuation agencies. Specifically, aspects such as organizational structure and establishment requirements, quality control and internal management, independence, group operations, and professional risk funds are all placed within the agencies’ sphere of self-regulation. In the filing-based management process, information technology is fully leveraged to enhance management efficiency, tap into the inherent potential of asset valuation agencies, strengthen quality control and risk prevention, and encourage diversified development as well as the pursuit of excellence, strength, and scale. The Measures also explicitly designate the Asset Valuation Association as a self-regulatory organization for asset valuation agencies and professionals, thereby fully harnessing the important role played by industry associations in participating in and implementing social governance.

　　According to the Asset Valuation Law and relevant documents issued by the State Council, China’s valuation industry currently comprises six specialized fields, each under the regulatory oversight of one of five government departments: Finance, Natural Resources, Housing and Urban-Rural Development, Commerce, and Insurance Supervision and Administration. Among these, the asset valuation field overseen by the finance department exhibits comprehensive characteristics. Building on the clear division of responsibilities among government departments for the supervision and management of the asset valuation industry, the measures place particular emphasis on coordinating the financial supervision and management of asset valuation with administrative oversight in other valuation sectors. Regarding filing and registration management, the regulations stipulate that the information management system for filings shall share data with other relevant administrative authorities. In terms of administrative inspections, the regulations allow the finance department, together with other relevant administrative authorities responsible for valuation, to conduct joint inspections. As for the handling of complaints and reports, when a complaint or report involves the responsibilities of multiple administrative authorities simultaneously, a mechanism for coordinated handling will be established. The design of this coordination system not only meets the needs of administrative management but also enhances the overall effectiveness of regulatory oversight. “ No conflict, no offside. ” The basic requirements are more conducive to implementing the requirements of the Asset Valuation Law and promoting the coordinated development of the entire valuation market.

　　The measure takes effect from 2017 Year 6 Moon 1 Effective on the day of implementation.