China broadens housing provident fund use to spur housing consumption

China has expanded the scope for withdrawing and using housing provident funds, a move expected to help unlock housing-related consumption and make the system more accessible to a broader range of workers.

A State Council decision amending the Regulations on Management of Housing Provident Fund was released and will take effect on Sept 20, the State Council said on Tuesday.

Under the revised rules, for those withdrawing from the housing provident fund to pay rent, the eligibility threshold requiring rent to exceed a prescribed proportion of a household's wage income will be removed.

New eligible provident fund uses will include renovating the homes the contributors live in and paying property management fees for such homes, as well as other housing-related consumption approved by the State Council.

The decision also broadens investment channels for provident funds, allowing housing provident fund management centers to purchase policy-oriented financial bonds using the funds.

Meanwhile, procedures for fund withdrawals will be simplified and the review period for housing provident fund loan applications shortened. Provident fund contribution records will be recognized nationwide, making it more convenient to transfer provident fund accounts and apply for provident fund loans across cities.

Self-employed individuals, part-time workers, and other flexible workers will also be allowed to voluntarily contribute to housing provident funds and receive corresponding policy support.