“Strengthening innovation within the asset valuation industry itself—especially by enhancing standards research and supporting supply-side structural reform—is the fundamental driving force behind the industry’s development,” said Zhang Guochun, Secretary-General of the China Association of Asset Appraisers, at a recent training session in Beijing.

He believes that the asset valuation industry is facing unprecedentedly favorable opportunities.

Asset valuation sees three major positive developments amid a trend of growth against the odds.

The rapid development of the asset valuation industry stems from the deepening drive of China’s reform and opening-up, as well as from the industry’s own robust vitality.

“The key is that the asset valuation industry is well-suited to the needs of China’s reform and opening-up, serves as an important professional force for safeguarding economic development, and is an indispensable component of the market economy,” said Zhang Guochun.

In his view, the asset valuation industry is currently benefiting from three major positive factors: First, driven by the new normal and supply-side structural reforms, the industry is experiencing significant market potential; second, the enactment of the “Asset Valuation Law” has provided the industry with a favorable institutional environment; and third, the government is vigorously promoting institutional reforms and delegating power to lower levels.

“This is the foundation of my strong confidence in the industry,” said Zhang Guochun. It will create a potential market for economic services in asset valuation, while fully mobilizing the industry’s own enthusiasm, initiative, and creativity, thereby adding significant new momentum to the industry’s development.

Pang Jun, Deputy Secretary-General of the Beijing Asset Appraisal Association, and Liu Gongqin, a member of the National Committee of the Chinese People's Political Consultative Conference and Chairman of Zhongtongcheng, expressed strong agreement with this training.

According to Pang Jun, 2015 This year, the asset valuation industry in the Beijing region achieved逆势 growth in revenue, attaining... 25.26% The growth rate is recent. 5 The highest growth rate in the Beijing region in recent years.

“We are living in an era of sweeping and profound reform. In particular, the promulgation of the Asset Valuation Law, the advancement of supply-side structural reform, and the rapid pace of information technology development have all created new opportunities for the industry’s growth. At this historic juncture, the asset valuation industry must embrace a spirit of innovation and reform to pursue new avenues of development,” said Pang Jun. Liu Gongqin echoed this sentiment, deeply moved by the era of great development in the asset valuation industry: “‘Connecting the world with integrity that knows no bounds’—cultivating and creating brands is a continuous process of innovation, especially one that demands professional innovation. Only when institutions themselves possess the power of innovation can they remain dynamic and sustain their development amid fierce competition.”

The limitless development of the market calls for reform and innovation.

As Zhang Guochun pointed out, supply-side structural reform has brought about tremendous changes to the industry.

Supply-side structural reform has spurred mixed-ownership reform, corporate restructuring, innovation in technologies and business models, as well as reforms in government systems and the transformation of government functions. Moreover, China’s “Five-in-One” overall strategic layout—particularly in the areas of cultural development and ecological civilization—also represents a vast, untapped market.

To fully harness the benefits of these reforms, the industry itself must continuously innovate and enhance its professional capabilities. The true vitality of the appraisal industry lies within the industry itself—relying on its own reform, development, and innovation. We must deepen the development of the appraisal market and drive the industry’s transformation and upgrading. In conjunction with broader macro-level initiatives such as the construction of a mixed-ownership economy, supply-side structural reform, and government system reform, we should promote innovation in appraisal theory and technology.

By perfecting the existing system of guidelines and accelerating the research and development of new guidelines, we can use these guidelines to lead and regulate the market. We will strengthen industry self-regulation and supervision to earn public trust. We will place great emphasis on talent development and team building to enhance overall competence. We will actively engage in international competition, bolster our international image and competitiveness, and open up new international markets. We will promote the advancement of information technology, establishing industry databases and information-sharing platforms. Moreover, we will foster sound professional ethics and cultivate a sense of patriotism and dedication to our work. Zhang Guochun clearly outlined a well-defined path forward.

Faced with new opportunities and challenges, Pang Jun advises asset valuation agencies to do a good job. 3 The article focuses on three key areas: First, leveraging our professional strengths to successfully expand into new business areas, actively exploring non-valuation-related business sectors, and becoming a think tank for enterprises, governments, and society. Second, placing great emphasis on employee development and cultivating talent effectively. Third, harnessing internet-based thinking to advance our information technology infrastructure.

Liu Gongqin also told reporters that assessment agencies should place great importance on management innovation and professional innovation. They need to innovatively establish a unique and highly efficient governance structure, thereby forming a clearly defined industrial chain management system with distinct business lines. In terms of professional innovation, it is essential to strengthen research into new business areas such as overseas mergers and acquisitions and emerging industries, bolster talent reserves, and lay a solid foundation for the company’s international expansion through innovation.

The industry’s own reforms and innovations should undoubtedly be reflected primarily in the innovation of relevant systems such as professional standards. To this end, the China Appraisal Society is vigorously and intensively preparing new standards, systems, and appraisal techniques.

According to what our reporter has learned, the guidelines on the valuation of intangible assets for cultural enterprises, already issued in the first half of the year, have provided significant impetus for promoting asset valuation services related to cultural enterprises. The recently established Professional Committee for Business Asset Valuation is also a specialized institution set up precisely to foster a new model of integrated development between commerce and cultural finance—aiming to enhance asset property rights trading and investment and financing service platforms through the advancement of business asset valuation. The China Association of Appraisers is currently accelerating the formulation of these guidelines. PPP Operational guidelines for investment projects, designed to provide guidance for relevant business activities, will be released within the year. The revision of the assessment industry’s regulatory framework and its alignment with the “Asset Valuation Law” will also be completed soon.