BEIJING, Aug. 20 (Xinhua) -- China on Tuesday announced a decision to revise its regulations regarding housing provident fund management, in the latest effort to adapt the long-standing housing finance system to a property market entering a new development phase.
The revised regulations, set to take effect on Sept. 20, will expand the scope for withdrawals, improve the efficiency of fund management and related services, strengthen risk prevention, and extend coverage to a broader range of workers, among other measures.
The revision marks a significant update to the housing provident fund system, which has been in place for more than two decades and covers about 180 million workers. Experts said the move is expected to help unlock housing demand and support a more stable property market over the longer term.
China's housing provident fund is a policy-based housing finance system funded by mandatory monthly contributions from employers and employees. Established during the country's rapid urbanization in the 1990s, the system has helped millions of urban workers secure homes and played an important role in easing housing shortages.
However, a system designed primarily around home purchases has become less suited to an ever-evolving market. Meanwhile, withdrawal restrictions have left substantial savings parked in individual accounts for long periods.
Data from the Ministry of Housing and Urban-Rural Development showed that housing provident fund balances stood at roughly 10.93 trillion yuan (about 1.62 trillion U.S. dollars) at the end of 2024, underscoring the potential to further revitalize dormant liquidity within the system.
To better meet diverse housing needs and put more of the funds to use, the revised rules expand the qualifying withdrawal categories from six to nine. New additions include renovations of owner-occupied homes, property management fees and other housing-related spending approved by the State Council.
This reform also seeks to adapt the system to China's changing labor market. Self-employed individuals, part-time workers and others in flexible employment will be allowed to make voluntary contributions and receive policy support under the revised regulations, potentially opening the door for more than 200 million flexible workers to participate in the system.
Contribution records will also be mutually recognized nationwide, making it easier to transfer provident fund accounts and apply for loans across urban areas.
Chen Wenjing, director of policy research at the China Index Academy, said the change could provide long-term support to the development of city clusters and metropolitan areas, as well as the freer flow of labor and other production factors.
The revision is part of a broader shift in China's housing policy, as the market moves away from an emphasis on new construction toward upgrading existing homes. The Central Economic Work Conference in December last year called for deeper reform of the housing provident fund system, a direction also reflected in the country's 15th Five-Year Plan (2026-2030).
Local governments have already moved to expand the ways in which residents can tap their housing provident fund savings. In the first seven months of 2026, more than 60 cities adjusted their housing provident fund policies, rolling out measures including higher loan limits, lower down-payment requirements, broader withdrawal rules, expanded coverage and new services.
In Huaibei, east China's Anhui Province, provident fund savings can now be withdrawn for age- and child-friendly home renovations, while in Zhuhai, south China's Guangdong Province, employees can now use their provident fund savings to help renovate homes owned by their spouses, parents or children.
Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, said the changes are part of a broader effort to make the housing provident fund more responsive to people's diverse housing needs.
The revision would accelerate the fund's transition from a financing tool centered on home purchases to a comprehensive support across the entire housing lifecycle, from buying and renting to renovating and maintaining homes, Li explained. ■
