China Expands Housing Provident Fund Use, New Rules to Take Effect September 20

Dragon Media News Desk

China will expand the scope for withdrawing and using housing provident fund savings, making it easier for contributors to use the funds for rent, home renovation, property management fees and other housing-related needs.

Chinese Premier Li Qiang has signed a State Council decree publicising a decision to revise the Regulations on Management of Housing Provident Fund. The revised rules will take effect on September 20, 2026.

Under the new regulations, the previous eligibility requirement that rent must exceed a prescribed proportion of a household’s wage income before housing provident fund savings can be withdrawn for rental payments will be removed.

Contributors will also be allowed to withdraw savings for new purposes, including renovating the homes in which they live and paying property management fees for those residences.

The revised rules will also broaden the channels through which housing provident funds can be invested and utilised. Housing provident fund management centres will be permitted to use the funds to purchase policy-oriented financial bonds.

To improve administrative efficiency, the authorities will simplify procedures for employees applying to withdraw housing provident fund savings and shorten the review period for housing provident fund loan applications.

The new framework also places greater emphasis on risk prevention and control. Housing provident fund management centres will be required to establish comprehensive, complete and accurate credit records and incorporate them into the national credit information sharing platform.

China is also seeking to expand participation in the housing provident fund system. Under the revised regulations, individual business owners, part-time employees and other people in flexible forms of employment will be able to make voluntary contributions to the fund.

Those contributors will also be eligible for policy support and benefits in accordance with the regulations.

The changes reflect China’s efforts to make the housing provident fund system more flexible and accessible, extending its use beyond traditional home purchases and mortgage repayment to a wider range of housing needs and employment arrangements.