BVWire was recently in Hong Kong, where we learned that the relatively new Hong Kong Institute of Financial Valuers (HKIFV) is taking up where a similar organization left off. In the wake of the internet bubble, the concerns of regulators triggered efforts by the valuation community to organize and bring the profession to a higher level. A group was formed, the Hong Kong Business Valuation Forum (HKBVF), but it was mostly real estate-centric. It did, however, issue standards for the valuation of businesses and intellectual property. But then the concerns of the regulators dissipated and the effort fizzled. Michael Li (Roma Group), a member of the working committee of the HKIFV, tells us the group is about to issue a discussion draft and approach the regulators to get their blessing. If that happens, standards will be adopted, training will be offered, and an oversight infrastructure will be put in place.
Some veteran valuators in Hong Kong say they doubt that the regulators will give the HKIFV their seal of approval. Also, the group does not appear to have the backing of the Big Four, so the regulators may nix the deal in light of that. We expect some developments in June.
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