To further enhance the quality of valuation services provided by financial enterprises and support the regulation of the financial market, the China Association of Asset Appraisers recently released... 5 Guidelines for Asset Valuation Experts in Financial Enterprises.

Expert guidance refers to additional technical instructions provided, based on the assessment criteria, for specific matters or challenging issues encountered in the assessment process. Deadline 2014 At the end of the year, the Chinese asset valuation industry had collectively released 26 The existing appraisal guidelines have established a relatively comprehensive guideline system that basically meets the needs of both professional practice and regulatory oversight. However, given the principled, universal, and mandatory nature of these guidelines, it is difficult for them to fully address the specific requirements of practitioners at different levels and various types of appraisal services. Therefore, developing more operational and targeted reference guidelines by experts—complementary to the existing appraisal guidelines—holds great significance in guiding appraisal practice. Expert guidelines are derived from the experts’ own experience and past cases, serving as concrete embodiments of best practices in valuation. However, given the diverse and complex nature of valuation assignments—each shaped by different economic activities and transaction objectives—expert guidelines may have certain limitations. Therefore, expert guidelines are intended solely for reference by asset appraisers during their professional practice and do not constitute mandatory standards for their practice.

This release 5 The expert guidelines reflect the technical requirements for valuing financial enterprises. As China’s financial system reform continues to deepen, the demand for asset valuation under financial regulatory policies is steadily increasing, and the unique characteristics of financial enterprise valuation are becoming increasingly prominent, with new technical challenges emerging continuously. To further guide asset appraisers in performing asset valuation work for financial enterprises, the China Association of Asset Appraisers, under the guidance of the Financial Department of the Ministry of Finance, has selected specific areas within financial enterprise valuation... 5 Key and challenging issues—based on a summary of industry practice experience and after nearly two years of research—have been formulated. 5 An expert guideline. This... 5 The respective expert guidelines are “Expert Guidelines for Asset Valuation No. [number]” 1 No. — Financial Regulatory Indicators That Should Be Given Attention in the Assessment of Financial Enterprises,” “Expert Guidance on Asset Valuation No. 2 No. — Selection of Valuation Methods for Initial Public Offerings of Financial Enterprises,” and “Expert Guidance on Asset Valuation No. 3 No. — “Valuation Model and Parameter Determination for Financial Enterprises Using the Income Approach,” “Expert Guidance on Asset Valuation No.” 4 No. — “Market-Based Valuation Model and Parameter Determination for Financial Enterprises” and “Expert Guidance on Asset Valuation No.” 5 No. — Utilization in Internal Actuarial Reports and Value Assessments of Life Insurance Companies.

Expert Guidance No. 1 The guideline, based on existing financial regulatory indicators and from the perspective of asset valuation, analyzes the financial regulatory indicators used in the assessment of financial enterprises, thereby appropriately integrating asset valuation with financial regulation. Expert Guidance No. 2 The document analyzes the specific characteristics of key elements in the valuation of initial public offerings (IPOs) by financial enterprises, including the valuation object, value type, valuation purpose, and valuation assumptions. It also provides recommendations on the selection among the three fundamental valuation methods: the income approach, the market approach, and the asset-based approach. Expert Guidance No. 3 The number refers to the analysis of overall restructuring, equity transfer, capital increase and share expansion, and... IPO Based on the differing needs of various economic activities, we distinguish between the income approach models and parameters used in controlling equity change transactions and non-controlling equity transactions, and offer recommendations for selecting evaluation models suitable for different types of financial enterprises. Expert Guidance No. 4 Based on theories such as the efficient capital market, this document analyzes the applicability of the comparable company method and the transaction-based comparison method when using the market approach to value financial enterprises. It also offers recommendations on the selection of parameters for commercial banks, insurance companies, securities firms, and other financial enterprises. Expert Guidance No. 5 Based on a thorough consideration of the business and operational characteristics of life insurance companies, this document provides a detailed analysis of the content of internal actuarial reports and offers recommendations on how to leverage these internal actuarial reports when employing the three fundamental valuation approaches—asset-based approach, income approach, and market approach—as well as other specific methods.

Meanwhile, in order to reflect the relevant requirements of the reform of the professional qualification management system for asset appraisers, the China Association of Asset Appraisers has revised two previously issued expert guidelines and reissued them as “Expert Guidance No. [Number] for Asset Appraisal.” 6 No. — Disclosure of Major Asset Restructuring Reports by Listed Companies and Expert Guidance on Asset Valuation 7 No. —— Business Quality Control for Small and Medium-Sized Assessment Firms. Henceforth, expert guidelines will no longer be developed.