Overall Penalty Situation from 2021 to 2023

I. Overall Penalty Situation from 2021 to 2023
(1) Basic Information
From 2021 to 2023, fiscal departments at all levels and asset appraisal associations issued a total of 547 administrative penalty and self-regulatory disciplinary decisions (hereinafter collectively referred to as “penalty decisions”), involving 216 instances of asset appraisal institutions, 466 individual asset appraisers, and 586 asset appraisal reports.
By year, in 2021 there were 68 cases involving 30 instances of asset valuation agencies, 54 individual asset valuers, and 52 asset valuation reports; in 2022, there were 158 cases involving 59 instances of asset valuation agencies, 143 individual asset valuers, and 168 asset valuation reports; and in 2023, there were 321 cases involving 127 instances of asset valuation agencies, 269 individual asset valuers, and 366 asset valuation reports. The number of penalties has been increasing year by year.
Table 1: Statistics on Penalties for the Years 2021–2023

(2) Penalty Authority
The entities responsible for imposing financial regulatory penalties fall into four categories: the Ministry of Finance, the financial departments of provinces, autonomous regions, municipalities directly under the central government, and cities separately listed in the national plan (hereinafter referred to as "local financial departments"); the China Association of Asset Appraisers (hereinafter referred to as "CAAA"); and the asset appraisal associations of provinces, autonomous regions, municipalities directly under the central government, and cities separately listed in the national plan (hereinafter referred to as "local associations"). Among these, local associations issued the largest number of penalty decisions—270 in total; local financial departments issued 212 penalty decisions; the CAAA issued 48 penalty decisions; and the Ministry of Finance issued 17 penalty decisions.
Table 2: Statistical Table of the Number of Penalty Decision Documents Issued from 2021 to 2023

(3) Source of the penalty decision
The penalty decisions originated from joint inspections, administrative inspections, self-regulatory inspections, special inspections, and verification of complaints and reports. Among these, the largest number of penalty decisions—433—were issued following joint inspections; 58 were issued after self-regulatory inspections; 48 were issued after administrative inspections; and both special inspections and verification of complaints and reports each resulted in 4 penalty decisions.
Table 3: Statistical Table of the Number of Penalties Imposed for Fiscal Supervision and Inspection of Asset Valuation from 2021 to 2023

(4) Administrative Penalty Measures
Financial authorities at all levels imposed a total of 229 administrative penalties. The most common penalty was “warning,” issued 111 times; the second most common was “warning and order to suspend business operations,” issued 42 times; and the third most common was “warning and confiscation of illegal gains,” issued 25 times.
Table 4: Statistical Table of Administrative Penalty Measures for Asset Valuation in 2021–2023

(5) Self-discipline and disciplinary measures
Asset valuation associations at all levels have imposed a total of 318 self-regulatory disciplinary actions. The most common type of sanction was “warning,” with a total of 145 instances; followed by “serious warning,” with 81 instances; third was “public censure,” with 52 instances; and fourth was “notification of criticism,” with 40 instances.
Table 5: Statistical Table of Self-Disciplinary and Disciplinary Sanctions for Asset Valuation in 2021–2023

(6) Types of business involving asset valuation reports
Among administrative penalties and self-regulatory sanctions, the largest number of asset valuation reports—153—pertained to business-type assets; followed by real estate asset valuation reports, with 99 reports; and then machinery and equipment asset valuation reports, totaling 89 reports.
Table 6: Statistical Table of Report Types Involved in Administrative Penalties and Self-Disciplinary Sanctions for Asset Valuation from 2021 to 2023