To implement the Asset Valuation Law, further strengthen fiscal and regulatory oversight of the asset valuation industry, and promote the healthy development of the asset valuation industry, 2017 Year 4 Moon 21 On [date], the Ministry of Finance formulated and issued the “Administrative Measures for Fiscal Supervision and Management of the Asset Valuation Industry” (Ministry of Finance Order No. [number]). 86 No., hereinafter referred to as the “Measures”), effective from 2017 Year 6 Moon 1 Effective on the day of implementation. 2011 Year 8 Moon 11 The “Measures for the Approval and Supervision and Administration of Asset Valuation Agencies” issued on the same day ( Ministry of Finance Order No. 64 No., hereinafter referred to as the Ministry of Finance No. 64 Order ) Also repealed simultaneously. Recently, a relevant official from the Ministry of Finance answered reporters' questions regarding the formulation and implementation of the “Measures.”

　　1. Q: Could you please explain the background behind the issuance of these Measures?

　　Answer: Since the 18th National Congress of the Party, as comprehensive deepening of reform has steadily advanced and various reform measures have been continuously introduced, the environment facing the asset valuation industry has undergone significant changes, placing higher demands on the administrative management of the asset valuation sector. To implement the supervisory and regulatory requirements for the asset valuation industry stipulated in the Asset Valuation Law and to reflect... “ Streamline administration and delegate power, while combining deregulation with regulation. ” the spirit of reform and “ Neither lacking nor overstepping one’s role. ” In accordance with the regulatory principles, the Ministry of Finance has formulated and issued the “Measures.”

　　First, there is a need to implement and enforce the Asset Valuation Law. The Asset Valuation Law consolidates the achievements of reform and further promotes the shift in the establishment of asset valuation agencies from an approval-based system to a filing-based system. At the same time, it grants the administrative authorities for asset valuation the powers of filing, inspection, investigation, penalty enforcement, and the formulation of industry regulatory systems. It requires these administrative authorities to strengthen their supervision and management of the asset valuation industry in accordance with the law, shifting the focus of supervision and management from ex-ante regulation to ex-during and ex-post regulation. Ministry of Finance No. 64 The content related to institutional approvals stipulated by the regulations is no longer aligned with the Asset Valuation Law.

　　Second, it is necessary to implement the spirit of the state’s regulatory reforms in the asset valuation industry. 2014 Since last year, the State Council has successively abolished the administrative licensing and certification requirements for the professional qualification of registered asset appraisers, shifted the management of the establishment of asset appraisal institutions and other entities from pre-approval to post-approval, and mandated the elimination of any relationships—such as sponsorship, supervision, liaison, or affiliation—between administrative agencies and industry associations and chambers of commerce. To this end, the Ministry of Finance has issued, in succession, the “Notice on Adjusting Relevant Matters Concerning the Approval of Asset Appraisal Institutions” and the “Supplementary Notice on Adjusting Relevant Matters Concerning the Approval of Asset Appraisal Institutions,” and, jointly with the Ministry of Human Resources and Social Security, formulated the “Interim Provisions on the Professional Qualification System for Asset Appraisers,” thereby adjusting the existing regulatory framework for the asset appraisal industry. In light of the legislative developments surrounding the Asset Appraisal Law, measures for the reform of the regulation of the asset appraisal industry need to be further institutionalized.

　　Third, it is necessary to promote the diversified development of the asset valuation industry. As the role of the asset valuation industry in the market economy becomes increasingly important, the demand for diversified development of asset valuation institutions is growing stronger. The economic activities involved in the practice of asset valuation institutions are becoming increasingly complex, making it even more critical to strengthen supervision of these institutions both during and after their operations. Ministry of Finance No. 64 The regulations concerning the business scope of asset valuation agencies, the qualifications of shareholders and partners, and the conditions for establishing branch offices impose restrictions on the diversified development of the industry. There is an urgent need to formulate new regulations in accordance with the law and accordingly strengthen provisions related to administrative supervision and management as well as legal liabilities.

　　2. Q: What are the main significances of the issuance of these Measures?

　　Answer: Overall, the Measures are of great significance for enhancing the administrative management level of the asset valuation industry and promoting its healthy development.

　　First, a system of administrative oversight over the asset valuation industry by fiscal authorities has been established. In line with the spirit of the central government’s deepening reform and in compliance with the requirements of laws and regulations such as the Asset Valuation Law as well as relevant State Council provisions, the management approach, objects of supervision, establishment and management methods of institutions, content of supervision, inspection, and investigation, and legal responsibilities in the asset valuation industry all now face new requirements under the new circumstances. The “Measures” have accordingly established a new supervisory and management system for the asset valuation industry that integrates administrative oversight, industry self-regulation, and institutional autonomy. They clearly define the supervisory content and requirements applicable to valuation professionals, valuation institutions, and valuation associations; delineate the division of administrative oversight responsibilities and functions among fiscal authorities at various levels; and refine the relevant provisions on legal liabilities in asset valuation. The establishment of this new supervisory system has clarified the operational rules for all relevant entities in the asset valuation industry, enabling these entities to operate within a well-defined regulatory framework.

　　Second, institutional safeguards have been established to promote the healthy development of the asset valuation industry. The “Measures” clearly specify how valuation professionals, valuation institutions, 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 encourage the valuation industry to put these principles into practice. “ Mass entrepreneurship, mass innovation. ” the vitality of the industry. The Measures clearly define the scope of self-management and filing-based management for asset valuation agencies. They specify that organizational forms and establishment requirements, quality control and internal management, independence, group operations, and professional risk funds all fall within the agencies’ self-management framework. In the filing-based management process, the Measures make full use of information technology to enhance management efficiency, tap into the inherent potential of asset valuation agencies, strengthen quality control and risk prevention, and encourage asset valuation agencies to pursue diversified development and become stronger, better, and larger. The Measures also clearly stipulate that the Asset Valuation Association serves as a self-regulatory organization for asset valuation agencies and professional asset valuers, fully leveraging the important role of industry associations in participating in and implementing social governance.

　　Third, it provides a coordinated regulatory framework for the appraisal sector that is tailored to the development of the market economy. Grounded in the realities of China’s appraisal industry, the Appraisal Law innovatively integrates the existing system—under which various administrative departments each exercise separate oversight—into a single legal framework that standardizes management across different specialized appraisal fields. It also mandates the establishment of mechanisms for communication, collaboration, and information sharing to address emerging issues arising from industry development, thereby jointly promoting the healthy and orderly growth of the appraisal sector. Building on the clear division of responsibilities between fiscal authorities and other relevant administrative departments in overseeing and managing the appraisal industry, the Measures place particular emphasis on coordinating fiscal supervision and management of appraisals with administrative oversight in other appraisal-related areas. With regard to filing and registration, the Measures stipulate that the filing information management system shall share data with other relevant administrative departments. In terms of administrative inspections, the Measures allow fiscal authorities, together with other relevant appraisal administrative departments, to conduct joint inspections. As for handling complaints and reports, when a complaint or report involves the responsibilities of multiple administrative departments simultaneously, a mechanism for joint handling shall be established. The design of this coordination system not only meets the needs of administrative management “ 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.

　　3. Q: Please describe the process behind the development of the “Measures.”

　　Answer: 2014 In that year, the State Council comprehensively implemented reforms to the administrative approval system. The Ministry of Finance immediately shifted the establishment and management of asset appraisal institutions from a pre-approval requirement to a post-approval requirement, and began working on the Ministry of Finance’s No. [number]... 64 The revision of the order, including it in the... 2015 Annual Financial Legislation Work Plan. 2015 The Ministry of Finance has organized several symposiums to solicit opinions from some local finance departments, local appraisal associations, and asset valuation agencies, and has formulated the Ministry of Finance’s No. [number]... 64 The draft amendment to the order, for public comment, is hereby released. 2015 Year 6 Pass the moon “ China Government Legal Information Network ” The Ministry of Finance is soliciting public comments through its external website and other channels.

　　2016 Year 7 Month, according to the Asset Valuation Law regarding “ The State Council’s relevant assessment administrative departments are tasked with formulating basic assessment guidelines and regulatory measures for the assessment industry. ” In accordance with the regulations, we promptly adjusted our legislative approach, shifting from revising the Ministry of Finance’s No. ... 64 The directive has been adjusted to establish, in accordance with the law, a completely new set of financial supervision and management measures for the asset valuation industry. 2016 Year 9 After repeated deliberations and detailed, item-by-item verification, the draft “Measures” was formulated and once again put out for public comment, open to both the general public and relevant organizations. Meanwhile, the Ministry of Finance organized two legislative feasibility studies, inviting legal experts, asset valuation scholars, representatives from asset valuation agencies, and local fiscal authorities to participate in these studies. In addition, the Ministry held a special symposium with the Legislative Affairs Commission of the Standing Committee of the National People’s Congress, engaging in in-depth exchanges of views and ultimately finalizing the draft “Measures.”

　　Considering that the draft Measures represent significant adjustments to the current regulatory framework for the asset valuation industry and will have a substantial impact on the standardized development of the entire asset valuation sector, our ministry has commissioned Renmin University of China as a third-party institution to conduct a legislative assessment. Following the assessment, Renmin University of China expressed strong endorsement of the draft Measures. 2017 Year 4 Moon 21 On [date], after repeated deliberations, revisions, and refinements, and following the completion of relevant legislative procedures, the “Measures” were promulgated as Ministry of Finance Order No. [number]. 86 The official release is here.

　　4. Q: What are the main contents of the “Measures”?

　　Answer: The “Measures” consist of a total of... 8 Chapter 72 The document consists of eight chapters, covering general provisions, asset valuation professionals, asset valuation institutions, the asset valuation association, supervision and inspection, investigation and handling, legal liabilities, and supplementary provisions. The main contents are as follows: First, it clarifies that these Measures apply to the asset valuation industry, asset valuation services, asset valuation professionals, asset valuation institutions, and asset valuation associations under the regulatory oversight of the financial authorities according to their respective responsibilities. Second, it sets out requirements for asset valuation professionals. Third, it provides detailed regulations on the self-management of asset valuation institutions, the self-regulatory management by the association, and administrative filing and registration procedures. Fourth, in accordance with the principles of separating government from society, clearly defining powers and responsibilities, and ensuring self-governance based on law, it specifies the management requirements for asset valuation industry associations in line with relevant provisions of the Asset Valuation Law. Fifth, it lists the duties, content, and requirements for the supervision and inspection work conducted by the financial authorities. Sixth, it outlines the content and requirements for the investigation and handling work carried out by the financial authorities. Seventh, it includes relevant provisions on legal liabilities. Eighth, it covers regulations on security reviews for asset valuation institutions with foreign investment, as well as provisions regarding the supervisory authority of competent departments at or above the prefectural-level city level.

　　5. Q: Could you please provide a detailed introduction to the scope of application of the “Measures”?

　　Answer: 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 Regulatory Authority. Among these, the asset valuation field overseen by the finance department exhibits comprehensive characteristics; therefore, it is essential to clearly define the scope of application of these Measures. First, the title of the Measures has been designated as the “Measures for the Financial Supervision and Administration of the Asset Valuation Industry,” which helps clarify the respective responsibilities of the departments involved. Second, the scope of regulated activities is specifically limited: namely, the professional services provided by asset valuation agencies and their qualified professionals—upon engagement—to appraise or estimate individual assets, portfolios of assets, enterprise value, financial interests, asset losses, or other economic interests, and to issue asset valuation reports; as well as the financial department’s supervision and administration of the asset valuation industry—all fall within the scope of these Measures. The Measures further stipulate that if asset valuation agencies and their professionals engage in the activities specified in the preceding paragraph and such activities are subject to laws, administrative regulations, or provisions of the State Council that fall under the jurisdiction of other administrative departments responsible for valuation, they shall comply with the relevant provisions of those other authorities. Third, in the supplementary provisions of the Measures, it is further clarified that the terms “asset valuation industry,” “asset valuation professionals,” “asset valuation agencies,” and “asset valuation associations” refer to the asset valuation industry, asset valuation professionals, asset valuation agencies, and asset valuation associations that are regulated by the finance department according to the division of responsibilities established by the Asset Valuation Law and State Council regulations. In accordance with the current division of responsibilities among departments, valuation fields not under the purview of the finance department shall be governed by the relevant laws, administrative regulations, and provisions issued by other administrative departments responsible for valuation, such as those overseeing natural resources, housing and urban-rural development, commerce, and insurance regulation.

　　6. Q: What are the specific requirements for asset valuation professionals under the “Measures”?

　　Answer: The Asset Valuation Law categorizes asset valuation professionals into appraisers and other asset valuation practitioners. Based on the scope of financial regulation, the “Measures” further classify asset valuation professionals into appraisers (including those specializing in jewelry appraisal, the same applies hereinafter) and other asset valuation practitioners who possess both professional knowledge and practical experience in asset valuation. Meanwhile, according to... “ Combine deregulation with regulation. ” In principle, appraisers in other specialized fields managed by other assessment and administrative authorities—provided they engage in asset valuation services as specified in Article 2 of these Measures—shall also be subject to the supervision of the financial authorities.

　　7. Q: The establishment of asset valuation agencies and their branches has been changed from approval-based to filing-based management. What specific provisions does the “Measures” contain?

　　Answer: Regarding the filing and management of asset valuation agencies and their branches, the “Measures” primarily stipulate the following: First, filing will be conducted through an information management system, and the documentation required for filing asset valuation agencies will be simplified to reduce the burden on applicants. However, given that the secure operation of the information system still needs to be verified, paper-based materials will continue to be required for the time being; depending on future circumstances, the requirement for paper materials could be reconsidered for eventual elimination. Second, the responsibilities of provincial-level financial authorities in the filing and management process have been clearly defined. If the filing information or materials are incomplete, the provincial-level financial authority shall, upon receipt of the filing materials, ... 5 Within one working day, provide a comprehensive notification of all required corrections and offer guidance; for applications with complete filing materials, the provincial finance department will complete the filing once it has collected all the necessary documents, and then... 20 Relevant information shall be made public to the society within a specified working day under an official letter number. Third, taking into account the actual circumstances of branch offices of asset valuation agencies, it is clarified that if an asset valuation agency establishes a branch office, the agency itself shall file a record with the provincial finance department where the branch office is located. At the same time, to facilitate the asset valuation agency’s record-filing process, the provincial finance department where the branch office is located shall notify the provincial finance department where the parent agency is located about the branch office’s record-filing status. Fourth, the procedures for changes in significant matters concerning the agency, the filing procedures for cross-provincial relocation of business premises, and the cancellation of record-filing are clearly defined. Fifth, it is stipulated that if an asset valuation agency fails to file its records as required by these Measures, it shall bear legal responsibility accordingly.

　　8. Q: What specific requirements does the “Measures” impose on asset appraisal associations?

　　Answer: In accordance with the principles of separating government from society, clarifying rights and responsibilities, and ensuring self-governance based on the rule of law, and in compliance with the provisions of the Asset Valuation Law, the “Measures” further refine the requirements for asset valuation industry associations. First, it stipulates that asset valuation associations are self-regulatory organizations for asset valuation firms and professional asset valuers, subject to the supervision of the relevant financial authorities. Such associations must not harm national interests or the public interest, nor may they infringe upon the legitimate rights and interests of their members. Second, it requires that the articles of association of asset valuation associations be filed with the financial regulatory authorities, and that asset valuation associations report to the financial authorities information such as members’ credit records, details of self-regulatory inspections conducted by members, and records of rewards and punishments imposed on members. Third, it sets forth the self-regulatory management requirements for asset valuation associations, including conducting self-regulatory inspections of the quality of practice and mechanisms for mitigating professional risks among asset valuation firms and their professional valuers, analyzing the materials submitted annually by these firms, and promptly reporting any violations discovered to the financial authorities. Fourth, it mandates that asset valuation associations strengthen communication and collaboration with other industry associations in related appraisal fields, establishing a mechanism for sharing information on members, practice activities, disciplinary actions, and other relevant matters.

　　9. Q: What regulations does the “Measures” stipulate regarding the supervision and management by the financial authorities?

　　Answer: The primary shift in supervision and management lies in transitioning from ex-ante approval to ex-post oversight. First, the responsibilities, content, and requirements for supervisory and inspection work conducted by fiscal authorities have been clearly defined. The specific division of responsibilities between the Ministry of Finance and local fiscal authorities has been streamlined, and the specific methods for fiscal authorities to carry out supervisory and inspection activities have been stipulated. Second, the content and requirements for investigation and handling activities undertaken by fiscal authorities have been clarified. Compared with supervisory inspections, investigation and handling are characterized by their occasional nature based on specific incidents, the specificity of both the subjects and the content involved, and the passive nature of administrative law enforcement. The Measures include a dedicated chapter that standardizes the investigative and handling actions of fiscal authorities, detailing the specific circumstances under which fiscal authorities will accept complaints and reports, the scope of cases they will handle, and the entities authorized to file such complaints and reports. Furthermore, the Measures clarify the procedures and methods that fiscal authorities must follow when processing complaints and reports.

　　10. Q: How can we effectively carry out the implementation guidance and supervision of the Measures?

　　Answer: The “Measures” have been in effect since... 2017 Year 6 Moon 1 Effective as of [date], to ensure the effective implementation of the Measures, fiscal departments and asset appraisal associations at all levels should regard the implementation of the Measures as a key component of their recent management work in the asset appraisal industry. They should attach great importance to this task, carefully plan ahead, and organize meticulously, and earnestly carry out the following tasks: :

　　First, we must earnestly carry out training and publicity efforts. We will prepare explanatory materials for the Measures, organize training sessions on the Measures, and provide systematic training to supervisory and administrative personnel in the provincial asset valuation industry. We will offer detailed explanations and clarifications on the key contents of the Measures, helping relevant personnel accurately understand and grasp the content and requirements of the Measures, thereby ensuring their smooth implementation. Fiscal departments at all levels and asset valuation associations should adopt a variety of channels and formats, making full use of various online platforms to effectively promote the Measures both within and outside the industry. They should proactively answer questions, address concerns, and respond to the interests of all parties, thus fostering a favorable social atmosphere for the steady implementation of the Measures.

　　Second, we must strengthen implementation and organization. The Ministry of Finance will establish relevant systems for implementing the Measures, clearly defining the specific responsibilities, procedures, and requirements for various aspects of fiscal supervision over the asset valuation industry, thereby providing operational guidance for fiscal oversight and ensuring the effective implementation of the Measures. Fiscal departments at all levels should closely monitor the implementation of the Measures, provide guidance to asset valuation agencies, valuation professionals, and asset valuation associations on how to carry out the implementation effectively, identify any problems encountered during implementation, and promptly report such issues back to the Ministry of Finance. Fiscal departments and asset valuation associations at all levels should also ensure coordination between the Measures and relevant regulatory policies in related asset valuation professional fields.

　　Third, we must promptly refine the relevant supporting systems. We should accelerate the development and promulgation of management regulations such as the “Basic Standards for Asset Valuation,” ensuring that these regulations are effectively implemented. In accordance with the requirements of the Asset Valuation Law, the China Association of Asset Appraisers has established and perfected a self-regulatory management system and mechanism for its members, formulated and continuously refined professional practice standards and codes of professional ethics, and provides guidance and oversight over members’ professional conduct.