Recently, the Ministry of Finance ("MOF") has issued the Administrative Measures for the Regulation of the Asset Appraisal Industry (Revised Draft for Comment) (the "Draft") for public comments by October 30, 2016.
The Draft specifies that those in the asset appraisal industry subject to the regulation include asset appraisal agencies, asset appraisal professionals, and asset appraisal associations. Asset appraisal agencies shall legally adopt a partnership or corporate form, and their names shall contain an identification of the industry with the Chinese word "pinggu" (meaning "appraisal") in it. An asset appraisal professional shall join an asset appraisal agency in order to engage in the related business and shall engage in such business with only one such agency. The Draft clearly states that asset appraisal agencies, while engaged in the related business, shall strictly abide by the asset appraisal rules, earnestly implement the assets appraisal procedures, and strengthen internal inspections to tightly control the risks of the practice. In addition, the Draft also makes stipulations on legal liability and other matters.