China Mulls Law to Regulate Appraisal Services

The NPC Standing Committee has wrapped up its three-day bimonthly-session. During the session, China’s top legislature reviewed the draft law on assets appraisal, which aims to regulate services and safeguard the legitimate rights of clients.

This is the first time China’s top legislature has deliberated a draft law on assets appraisal. The draft, which runs to eight chapters and 59 articles, stipulates mainly on the registration of public valuers, obligations and rights of appraisal institutions, supervision over the appraisal industry, and penalties for violations.

Discussions were intense among senior legislators. Hua Jianmin, Vice Chairman of the NPC Standing Committee, thought the draft should include more items.

Hua Jianmin said, " The appraisal of some very important national treasures like the Great Wall should be included in the draft law. We can learn from the practices of western countries like the US. "

Assets appraisal not only applies to national treasures, it is also affects everyone’s daily life. Cheng Jinpei, a member of the NPC Standing Committee, suggested the registration of public valuers should be tougher.

Cheng Jinpei said, "The current qualification examinations for public valuers are relatively simple and not clearly classified. We should not only rely on the self-regulation of the industry but create a legal standard."

There are about ten thousand appraisal institutions, with more than a hundred thousand registered appraisers and three hundred thousand people employed in the field. The draft law calls for coordinated efforts in different government departments to better regulate the industry.