Rules on the Evaluation and Management of State Assets (2020 Revision)

Rules on the Evaluation and Management of State Assets (2020 Revision)

(Issued by the Order No. 91 of the State Council of the People's
Republic of China on November 16, 1991; revised in accordance with
the Decision of the State Council to Amend and Repeal Certain
Administrative Regulations on November 29, 2020.)

CHAPTER I GENERAL PROVISIONS

Article 1 These Rules are formulated hereby to correctly reflect the magnitude of value of state assets and protect the legitimate rights and interests of the owners, managers, and users.

Article 2 These Rules are applicable to the evaluation of state assets unless unless it has been stipulated otherwise in laws or regulations.

Article 3 Evaluation of assets shall be carried out for the possessor of state assets (hereinafter referred to as the possessor) if the possessor engages in any of the following cases:
(1) Auction or transfer of assets;
(2) Merge, sale, affiliation, or corporate operation of enterprise;
(3) Establishment of a foreign-funded enterprise with overseas companies, enterprises or other economic organizations or individuals;
(4) Liquidation of enterprise;
(5) Other cases wherein evaluation of assets are necessary as stipulated in relevant state regulations.

Article 4 Evaluation of assets can be carried out if the possessor engages in any of the following cases and the parties involved think it as necessary:
(1) Use of assets as mortgages or other kinds of guarantees;
(2) Lease of enterprise;
(3) Other cases wherein evaluation of assets is necessary.

Article 5 Evaluation of state assets on a national basis or in special trades shall be decided upon by the State Council.

Article 6 State assets to be evaluated shall include fixed assets, current assets, invisible assets, and other forms of assets.

Article 7 Evaluation of state assets shall be carried out according to the principle of truthfulness, scientificity and feasibility and in line with state-set standards, procedures and methods.

CHAPTER II ORGANIZATIONAL MANAGEMENT

Article 8 The work of evaluation of state assets shall be put under the management and supervision of administrative departments responsible for the management of state assets according to their limits of power over the management of state assets.
Organization of evaluation of state assets shall be put under the charge of responsible departments in the line according to the subordination of the possessor.
Administrative departments in charge of the management of state assets and responsible departments in the line shall not directly engage themselves in the business of evaluation of state assets.

Article 9 Assets evaluation companies, public accounting firms, auditing offices, and financial consulting companies carrying state asset evaluation qualification certificates issued by the State Council or provincial, autonomous regional or municipal people's governments and interim evaluation organizations approved by administrative departments responsible for the management of state assets under the State Council or provincial, autonomous regional or municipal people's governments (hereinafter referred to uniformly as the asset evaluation departments) can engage themselves in the business of evaluation of state assets as entrusted by the possessor.
Rules governing the management of the asset evaluation departments specified in the preceding clause shall be worked out by administrative departments responsible for the management of state assets under the State Council.

Article 10 When entrusting evaluation of assets to the asset evaluation departments, the possessor shall provide these departments with true information and reference materials. The asset evaluation departments shall keep secret the information and reference materials provided by the possessor.

Article 11 The asset evaluation departments shall render paid services when they engage in evaluation of assets. Rules governing the charging of fees for asset evaluation shall be worked out by administrative departments responsible for the management of state assets under the State Council together with financial and price departments.

CHAPTER III PROCEDURES OF EVALUATION

Article 12 Evaluation of state assets shall be carried out according to the following procedures:
(1) Application for evaluation;
(2) Checking out of assets;
(3)Assessment and estimation;
(4) Verification and confirmation.

Article 13 The possessor that carries out evaluation of assets according to stipulations in Article 3 and Article 4 of these Rules shall, after passing examination by and winning approval from responsible departments, submit asset evaluation applications to administrative departments responsible for the management of state assets at the same level and attach to these applications catalogues of assets, relevant accounting statements, and other reference materials.
With authorization or trust by administrative de......