More people will be allowed to provide asset appraisal services, under a draft law submitted to the top legislature for a fourth reading on Monday.
The draft, submitted to a bi-monthly session of the National People's Congress (NPC) Standing Committee, allows certified appraisers who have passed national exams, as well as others who have expertise and hands-on experience in asset evaluation, to provide such services.
Under a previous draft, only certified appraisers were allowed to practice asset appraisal.
Practitioners must provide appraisal services and sign appraisal reports in accordance with the law, according to the draft, which is likely to be put to vote at this session before it ends on Saturday.
The draft also stipulated that for matters involving state-owned assets or public interests an appraisal would be a legal requirement, appraisal agencies should assign at least two certified appraisers to the job and sign appraisal reports.
Appraiser qualification exams will be organized by national appraisal industry associations, according to the draft.
China has more than 14,000 appraisal agencies, with more than 130,000 certified appraisers and 600,000 others employed in the industry, according to official figures.
The appraisal industry should be regulated by city level authorities and above, the draft said.
It also provided that appraisal agencies should supervise and take responsibility for the professional conduct of their practitioners.
"The draft law is very significant in ensuring the sound development of the appraisal industry, maintaining order in the socialist market economy, as well as promoting reform of the state-owned enterprises and state-owned assets administration system," the NPC Law Committee said in a review report.
The draft is "fairly mature" after several rounds of revision, and it is now necessary to pass it, the committee said, suggesting it be put to a vote at this session.
While deliberating the draft law, several lawmakers highlighted the important role of appraisal industry associations.
Improving industry associations will be a crucial task as it will help draw a clearer line between the government and the market, lawmaker Wu Xiaoling said.
"With guidance from the government, industry associations will play a bigger role. This is the institutional foundation for the healthy development of the asset evaluation industry," Wu said.
Wu urged the associations to be the voice of people in the appraisal industry and serve as a bridge between the industry and the government.
Meanwhile, lawmaker Che Guangtie noted it is "highly necessary" for industry associations to establish mechanisms for communication, coordination and information sharing.
"Although appraisal agencies rely heavily on data, their resources are not unified. Nor do they invest much in information gathering," Che said.
Che called on regulatory agencies to give greater support to industry associations and the speedy establishment of such mechanisms.
