Valuation for Public Disclosure – A Practice Manual in valuing Properties in Hong Kong and China



Hong Kong








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BMI Appraisals' latest publication "Valuation for Public Disclosure – A Practice Manual in valuing Properties in Hong Kong and China" will be launching in May 2009, to provide an overview in relation to the property valuation for public documentation purpose.

Executive Summary

A listing status could offer potential companies an abundance of opportunities to capital for growth. To enjoy the advantages after listing, the issuer has first to meet the most stringent requirements, consider the wider implications of such listing exercise, and the most important of all, to be acquainted with various listing procedures and rules. As one of the above listing requirements for public documentation, the property valuation has attracted more and more concerns and focuses. To entrepreneurs, professional advices such as property valuation and consultancy services on asset values and assistance to gain a listing status on the Hong Kong Stock Exchange ("HKSE") are deemed necessary; to property professionals, valuations for such purposes represent a huge potential market revealing by the fact that large-scale mainland enterprises of different businesses are still in the pipeline to be listed on the Hong Kong Stock Exchange.

Being a valuer for the majority of those property valuations, we have a mission to contribute our experience in this area to assist those parties who want to know more about the process(es).

As a practice manual aiming at providing an overview in relation to the property valuation for public documentation purpose, this book almost covers all of the major issues involved in the exercise. It starts from introducing the basic listing requirements, summarizing the process for a listing application to providing an insight on the role of various professional parties.

Beyond that, it also highlights the Listing Rules, Practice Notes and Code of Practices which are used to govern the behaviors of all parties involved regarding the disclosure requirement in the public documents, published by Securities and Futures Commission ("SFC") for sake of protecting potential investors from any fraud or misrepresentations. In addition to the above rules and regulations, this book also introduces to relevant professional Standards and Practices governing the professional parties involved. For example, it mentions relevant chapters in the Standards, under the discipline of the Hong Kong Institute of Surveyors ("HKIS") and the Royal Institution of Chartered Surveyors ("RICS"), that a valuer has to observe and the experience required for property valuation for public documentation purposes.

To cope with the rapid market change, we incorporate new financial and accounting reporting standards related to property valuation into the book. Land system in the PRC is a rather complicated issue especially to those who are unfamiliar to it. This book gives a basic knowledge to valuers on the land tenure system and the identification of different title documents for their ease of work. Some special issues for entering Chinese real estate market are introduced as a reminder.

It is strongly emphasized by the HKIS that a valuer has to act professionally and uphold professionalism at all times. Hence, the importance and practice of due diligence in accordance with the highest standard of business ethics have been featured. For this reason, appropriate valuation guideline to be adopted and advice to valuers to ensure highest level of professionalism in this volatile market are focused.

The best practice of the profession is promoted and we remind the readers to check with the relevant authorities for updated information and requirements and keep abreast of changes in statutory or non-statutory rules and regulations to react proactively to market changes.

Being one of our targeted readers, senior management of potential listing companies may find this practice manual useful by giving a clear, concise introduction of various topics important to them to make strategic decisions before going ahead. This book also serves as a quick reference to estate surveyors, practicing lawyers, accountants and auditing professionals who handle related topics in their daily work. For academic purpose, this book can be used as a textbook for the tertiary institutions who are having similar surveying courses, or as a reference book for students who are interested in the subject.

Interested parties please check our website for the most updated information of the book and its publication date.

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