Ministry of Finance and China Securities Regulatory Commission, Circular on Administrative Issues Relevant to Asset Appraisal Firms that Engage in Securities and Futures-related Business

财政部、中国证券监督管理委员会关于从事证券期货相关业务的资产评估机构有关管理问题的通知

July 09, 2008 | BY

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Standards of asset appraisal firms controlled to protect the securities market.

Clp Reference: 3300/08.04.29 Promulgated: 2008-04-29 Effective: 2008-07-01

Issued: April 29 2008
Effective: July 1 2008

Main Contents: The Circular sets forth the criteria for asset appraisal firms applying for securities and futures related business valuation qualifications:

(1) it has been lawfully established and has had its asset appraisal qualifications for at least three years and, if it has been involved in a merger by absorption, one year shall have elapsed from the date of completion of amendment of business registration;

(2) its quality control system and other internal control systems are sound and have been effectively implemented, and its practice quality and professional ethics have been good;

(3) it has at least 30 registered asset appraisers, of whom at least 20 have had their registered valuator certificates and been in practice continuously during the most recent three years;

(4) it has net assets of not less than Rmb2 million;

(5) it has purchased professional liability insurance or makes allocations to a professional risk fund in accordance with provisions;

(6) at least half of its partners or its shareholders holding not less than 50% of its equity have, most recently, been in practice with the firm continuously for at least three years; and

(7) during the most recent three years, its valuation business revenue has totalled not less than Rmb20 million and each year has been not less than Rmb5 million.

clp reference:3300/08.04.29prc reference:财企[2008] 81号promulgated:2008-04-29effective:2008-07-01

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