China will expand the scope of its housing provident fund system, making it easier for contributors to use their savings for housing-related expenses and broadening participation in the scheme from Sept 20, 2026.
Chinese Premier Li Qiang has signed a State Council decree publicising a decision to revise the Regulations on Management of Housing Provident Fund, with the revised rules taking effect on Sept 20.
Under the changes, contributors seeking to withdraw housing provident fund savings to pay rent will no longer be required to meet the existing threshold that rent must exceed a prescribed proportion of household wage income.
The revised regulations will also allow housing provident fund savings to be withdrawn for additional purposes, including renovating homes occupied by contributors and paying property management fees for those homes.
The decision will also broaden the channels for the investment and utilisation of housing provident funds.
Under the revised regulations, housing provident fund management centres will be permitted to use the funds to purchase policy-oriented financial bonds, expanding the investment options available to the centres.
The changes are also aimed at improving the efficiency of housing provident fund services.
Authorities will simplify procedures for employees applying to withdraw their housing provident fund savings and shorten the review period for housing provident fund loan applications.
At the same time, the revised regulations introduce measures to strengthen risk prevention and management.
Housing provident fund management centres will be required to establish comprehensive, complete and accurate credit records and incorporate the information into the national credit information sharing platform.
The revised rules also seek to expand coverage of the housing provident fund system by allowing individual business owners, part-time employees and other people in flexible employment to make voluntary contributions.
These groups will be eligible to enjoy policy support in accordance with the revised regulations, potentially widening access to housing provident fund benefits beyond traditionally covered employees.
The changes form part of China’s efforts to improve the flexibility, accessibility and management efficiency of its housing provident fund system while strengthening risk controls.
