Asset valuation is a professional activity that provides value metrics and information to all parties involved in market transactions. It directly affects the effectiveness of value信息披露 and the efficiency of the market, thereby playing an irreplaceable role in the legitimate protection of state-owned asset rights and public interests, as well as in achieving a reasonable balance of interests among all parties in market transactions. Since asset valuation relies on original financial and operational data of assets, along with market parameters, and involves professional secondary processing based on the market logic of capital operations and asset management, it extracts asset value information rather than simply reproducing the original data. Consequently, it requires special qualifications, credentials, and expertise—such as exceptional credibility, specific conditions, and specialized skills—to ensure that the secondary information is objective, impartial, fair, and scientifically sound, thus building social trust and providing the market with effective value information that safeguards the free, healthy, and efficient functioning of the market. Precisely because asset valuation is indispensable for the normal operation of the market and because its credibility hinges on possessing unique credibility and specialized skills, asset valuation has always been regulated through a licensing system. This regulatory approach has played an irreplaceable role in safeguarding the security of state-owned assets and ensuring the effective operation of securities and capital markets.

     The State Council’s decision to abolish the licensing requirement for appraisers’ practice is a reform of the appraiser准入 system, carried out against the backdrop of streamlining administration and delegating power, with the aim of better leveraging the role of market mechanisms. Given the diversification of economic entities and the increasingly varied demands of the market—especially under the “Two Masses and Two Innovations” initiative, which has further spurred diverse forms of supply—the removal of the licensing requirement for appraisers’ practice will inject a broader pool of practitioners into the market, enabling more flexible and efficient allocation and mechanism-based selection by the market itself, thus bringing fresh vitality and renewed vigor to the appraisal industry.

     For the independent assessment needs of private economic entities and other market players, the combination of the inherent, naturally effective autonomy of these entities themselves with the constraints imposed by market mechanisms enables the market to self-regulate and function efficiently without the need for legislative restrictions on the qualifications or thresholds for assessment professionals. As for statutorily mandated appraisal services—given their implications for state-owned assets and public interests—relevant legislation establishes asset valuation information as a legally recognized reference for determining value, thereby embedding it as a statutory institutional arrangement for managing state-owned assets and safeguarding public interests. The basis for such legislation is that asset valuation inherently requires specific credentials, qualifications, expertise, and skills, as well as certain market-entry conditions. Accordingly, in line with related legislation, professionals engaged in statutorily mandated appraisals must meet certain threshold requirements.

     From the perspective of alignment with relevant laws governing state-owned asset management and securities market regulation, the practice of statutory appraisal services should be carried out exclusively by appraisers holding specific qualifications. This approach not only takes into account the legal requirements pertaining to statutory appraisal services but also ensures that, beyond appraisers themselves, other individuals engaged in appraisal activities retain the right to be regulated and chosen by the market.

     Appraisers and appraisal institutions undertaking statutory appraisal services must meet certain requirements. Given that appraisal activities involve public interests and state-owned assets, the qualifications of appraisal institutions have always been subject to administrative licensing. Requiring appraisal institutions to maintain a certain number of appraisers with appropriate professional experience underscores the professionalism of these institutions, ensuring they genuinely possess special credibility and expertise, thereby establishing the trustworthiness that both the market and society can rely on. The practice of China’s reform and opening-up has amply demonstrated that setting necessary conditions—such as the number of appraisers, adherence to appraisal standards, and membership in industry associations—is the only effective mechanism for guaranteeing the credibility of appraisal services.

     Requiring appraisers to pass a nationwide unified examination, adhere to appraisal standards, register with the industry, and participate in continuing education are all essential conditions for ensuring that appraisers possess the professional competence required to perform their duties and take on legally mandated appraisal assignments.

Statutory valuations are conducted by institutions and personnel with specific qualifications, which is an international practice. For example, Hong Kong’s securities trading regulations explicitly stipulate that valuation reports provided for stock listings on the Hong Kong Stock Exchange and mergers and acquisitions involving listed companies must be signed by chartered surveyors.