We caught up with China Appraisal Society’s newest representative on the IVSC MSRB, CJ, to find out more about her role and the work CAS is doing to build valuation professionalism in China.
Q1: Can you tell us a bit about your background in valuation; which areas of valuation in particular are you interested in?
CJ：I am overseas business director in Shanghai Yinxin Assets Appraisal Co.LTD. and have been engaged in cross-border M&A, IPO, equity transfer projects for business valuation, intangible assets, and fixed assets valuation for several years. I am qualified, through CAS, as an expert in overseas business appraisal and worked in diverse and international teams on consultancy projects for a number of the world’s top 500 multinationals. In the context of China’s influential “Belt and Road Initiative”, the appraisal industry here is developing extremely rapidly. In tandem, there has been a growing interest in the Chinese market from international businesses and investors.
Q2: What do you believe are some of the major issues/trends shaping the valuation profession today?
CJ: Without any doubt, data and technological developments are the main long-term drivers for the appraisal industry. Developed and used prudently, these trends have the potential to dramatically improve the quality and reliability of appraisal work. Unsurprisingly, then, a unified standard such as IVS will play a critical role as a common framework for data sharing and comparability, which will unlock the potential of these drivers.
In the more immediate term, the COVID-19 pandemic has had a material impact in every market and sector. China has been no exception. The appraisal industry has met with many challenges as a result of this. Other trends which are shaping the profession include the financial reporting environment, where appraisers have been called upon to provide expertise in areas such as impairment testing for goodwill, long term investment, intangible assets etc. which have generated lots of new opportunities and challenges for the profession.
Q3: CAS is a sponsor of the IVSC, but for those that are less familiar, what can you tell us about the China Appraisal Society? How many valuers does it represent, and how does it work with the International Valuation Standards?
CJ: China Appraisal Society is an industrial, national and non-profit social organization voluntarily formed by China’s appraisal institutions and appraisal professionals. By 2019, there were nearly 40,000 registered appraisers and about 110,000 related employees. Over many years, China Appraisal Society has been represented throughout the IVSC including, currently, through its Vice President and Secretary General, Mr. Zhang Genghua, on the IVSC’s Board of Trustees. China Appraisal Society maintains a strong and cooperative relationship with IVSC, making contributions to the development and implementation of the International Valuation Standards. In the future, China Appraisal Society will, as always, continue to assume corresponding responsibilities and fulfill its obligations in IVSC, further strengthen its participation in the Council, and improve the international cooperation of China's appraisal industry.
Q4: Why do you think it is important to be a part of the IVSC's MSRB and, more broadly, what is the advantage of the world working together to develop and promote International Valuation Standards?
CJ：The IVSC’s Membership and Standards Recognition Board plays a very important role in supporting development and professionalization of the valuation sector, through its work to promulgate IVS. The standards are developed through international boards and reflect ‘world best practices’, but that effort would be worth little if they were not being implemented around the world. This board is a key to achieving this and I am excited to bring my international experience, and knowledge of the appraisal industry in China to the group’s work.
Q5: What are you most looking forward to in your new role as an MSR Board member?
CJ: As always, I will actively participate in the professional exchanges between IVSC and CAS, focus on the in-depth cooperation between internationalization and localization, and adhere to seeking common ground while reserving differences, in order to bridge the gap between International Valuation Standard and China Valuation Standard. I am also looking forward to working with my Board colleagues and to supporting the ongoing development of the appraisal profession, here and throughout the world.