Ministry of Finance, Administration of the Examination and Approval of Asset Valuation Institutions Procedures

Promulgated: May 11 2005
Effective: June 1 2005
Applicability: The term 'asset valuation institutions' refers to lawfully established social intermediaries that have obtained asset valuation qualifications to engage in asset valuation business activities (Article 2).

Main contents: The scope of asset valuation mainly includes: various types of single asset valuation, overall valuation of enterprises, and other asset valuation or project valuation demanded by the market (Article 4). Asset valuation institutions may be in the form of partnership or limited liability companies (Article 8). For establishment of partnership asset valuation institutions, actual payment of capital contribution by partners shall be at least Rmb100,000 or more (Article 10). For establishment of asset valuation limited liability companies, registered capital of at least Rmb300,000 is required (Article 11). In general, partners or shareholders shall have engaged in asset valuation in asset valuation institutions for at least three years (Article 12). Article 15 specifies the procedures for establishing asset valuation institutions. Asset valuation institutions intending to establish branches shall have income from valuation business for the three years prior to the date of application of Rmb15 million in aggregate (Article 29). Changes to and termination of asset valuation institutions and their branches are detailed in Part Four.
Repealed legislation: Ministry of Finance, Administration of Asset Valuation Organizations Tentative Procedures, Mar 25 1999, CLP 1999 No.7 p5 and «Establishment of Asset Valuation Institutions with Capital Contribution Made by Intermediaries and Establishment of Branches by Asset Valuation Institutions Tentative Provisions»Circular, Nov 24 1999