China: CNIPA and Other Departments Jointly Issue Notice on Further Regulating Several Issues in Intellectual Property Asset Valuation
Published 25 September 2025
Sarah Xuan
On September 1, 2025, the Ministry of Finance, the National Financial Regulatory Administration, the China National Intellectual Property Administration (CNIPA), and the National Copyright Administration jointly issued the Notice on Further Regulating Several Issues in Intellectual Property Asset Valuation (Cai Zi [2025] No. 128).
For a long time, the valuation of intellectual property (IP) assets has faced problems such as inconsistent standards, irregular assessment practices, and uneven service quality. In particular, in scenarios such as IP pledge financing, transfer of state-owned assets, and technology exports involving national security, the accuracy and fairness of asset valuation directly affect resource allocation efficiency and risk control. The issuance of this Notice aims to improve valuation rules, strengthen professional practice standards, and clarify the responsibilities of all parties, so as to further enhance the specialization, institutionalization, and transparency of IP asset valuation, thereby promoting the effective use and realization of IP value.
Main Contents of the Notice
(1) Leveraging the Professional Role of ValuationThe Notice first emphasizes that the reasonable determination of IP value is the core link in its commercialization and utilization, and asset valuation should be conducted in accordance with existing laws and regulations. Notably, the Notice does not mandate that all IP transactions must undergo valuation, but rather follows the principle of “mandatory by law + voluntary by parties.” At the same time, it explicitly requires valuation for IP transfers involving national security. This institutional design safeguards public interest while preserving the autonomy of market entities, balancing efficiency and security.
(2) Standardizing Valuation PracticesThe Notice sets out five requirements: compliance with legal standards, strengthening professional capacity building, introducing cross-disciplinary experts, applying big data and artificial intelligence tools, and emphasizing risk control in pledge financing. This reflects the regulators’ encouragement of new technologies and cross-disciplinary talent, promoting intelligent and diversified development of valuation services. These measures not only improve the scientific basis and persuasiveness of valuation conclusions, but also point the way for the transformation and upgrading of the valuation industry.
(3) Strengthening Supervision and Self-RegulationOn the supervision side, the four departments will establish a coordination mechanism and emphasize stricter oversight of “large and abnormal valuation reports.” This means that IP asset valuation activities will face stricter disclosure and regulatory scrutiny. Meanwhile, the China Appraisal Society is assigned clearer responsibilities in self-regulation and professional guidance. This approach enhances regulatory synergy while promoting industry self-discipline, jointly improving valuation quality.
(4) Implementing Responsibilities of All PartiesThe Notice assigns responsibilities to valuation agencies, clients, and financial institutions:1. Valuation agencies: Will bear legal liability for misconduct in practice.2. Clients: Must provide information truthfully and must not interfere with valuation results.3. Financial institutions: When using valuation results, must pay attention to the reasonable relationship between loan amount, collateral amount, and valuation value, and also take into account the rapid pace of technological updates.This series of provisions not only clarifies rights and obligations but also forms a closed loop of accountability, ensuring lawful and compliant operation at every stage.
Conclusion Overall, the Notice combines regulatory rigor with guiding principles, reflecting a “regulation + innovation” approach: it emphasizes implementing existing laws and regulations while also aligning with trends of digital transformation and financial innovation. For IP asset valuation, it has three major impacts: 1. Enhancing Credibility of Valuation: By strengthening legal constraints and industry self-regulation, it prevents distorted valuation results and increases market confidence in appraisal reports.2. Promoting Financial Service Innovation: By clarifying requirements for pledge financing valuations, it provides institutional support for the financing function of IP assets, helping alleviate financing difficulties for SMEs.3. Driving Industrial Value Realization: As a bridge between IP and capital markets, valuation will further unleash the economic value of IP, fostering the transformation of scientific and technological achievements and industrial upgrading. With the implementation of this Notice, IP asset valuation will gradually move toward greater standardization, professionalism, and intelligence, providing stronger support for the utilization and protection of intellectual property.
Main Contents of the Notice
(1) Leveraging the Professional Role of ValuationThe Notice first emphasizes that the reasonable determination of IP value is the core link in its commercialization and utilization, and asset valuation should be conducted in accordance with existing laws and regulations. Notably, the Notice does not mandate that all IP transactions must undergo valuation, but rather follows the principle of “mandatory by law + voluntary by parties.” At the same time, it explicitly requires valuation for IP transfers involving national security. This institutional design safeguards public interest while preserving the autonomy of market entities, balancing efficiency and security.
(2) Standardizing Valuation PracticesThe Notice sets out five requirements: compliance with legal standards, strengthening professional capacity building, introducing cross-disciplinary experts, applying big data and artificial intelligence tools, and emphasizing risk control in pledge financing. This reflects the regulators’ encouragement of new technologies and cross-disciplinary talent, promoting intelligent and diversified development of valuation services. These measures not only improve the scientific basis and persuasiveness of valuation conclusions, but also point the way for the transformation and upgrading of the valuation industry.
(3) Strengthening Supervision and Self-RegulationOn the supervision side, the four departments will establish a coordination mechanism and emphasize stricter oversight of “large and abnormal valuation reports.” This means that IP asset valuation activities will face stricter disclosure and regulatory scrutiny. Meanwhile, the China Appraisal Society is assigned clearer responsibilities in self-regulation and professional guidance. This approach enhances regulatory synergy while promoting industry self-discipline, jointly improving valuation quality.
(4) Implementing Responsibilities of All PartiesThe Notice assigns responsibilities to valuation agencies, clients, and financial institutions:1. Valuation agencies: Will bear legal liability for misconduct in practice.2. Clients: Must provide information truthfully and must not interfere with valuation results.3. Financial institutions: When using valuation results, must pay attention to the reasonable relationship between loan amount, collateral amount, and valuation value, and also take into account the rapid pace of technological updates.This series of provisions not only clarifies rights and obligations but also forms a closed loop of accountability, ensuring lawful and compliant operation at every stage.
Conclusion Overall, the Notice combines regulatory rigor with guiding principles, reflecting a “regulation + innovation” approach: it emphasizes implementing existing laws and regulations while also aligning with trends of digital transformation and financial innovation. For IP asset valuation, it has three major impacts: 1. Enhancing Credibility of Valuation: By strengthening legal constraints and industry self-regulation, it prevents distorted valuation results and increases market confidence in appraisal reports.2. Promoting Financial Service Innovation: By clarifying requirements for pledge financing valuations, it provides institutional support for the financing function of IP assets, helping alleviate financing difficulties for SMEs.3. Driving Industrial Value Realization: As a bridge between IP and capital markets, valuation will further unleash the economic value of IP, fostering the transformation of scientific and technological achievements and industrial upgrading. With the implementation of this Notice, IP asset valuation will gradually move toward greater standardization, professionalism, and intelligence, providing stronger support for the utilization and protection of intellectual property.