China expands housing provident fund to gig workers and new uses

A State Council meeting approved a draft amendment to the Housing Provident Fund Management Regulations, marking the most extensive revision in two decades. The reform widens coverage to individual business owners, part‑time staff and other flexible‑employment workers such as food‑delivery riders and ride‑hailing drivers, allowing them to join the fund voluntarily. It also expands the list of permissible withdrawals from six to nine categories, adding self‑occupied home renovation and payment of property fees. Digital upgrades will link data across departments and regions, enabling inter‑city loan recognition and faster processing.

By the end of 2024 the national fund held about 10.9 trillion yuan, but only 46 % of contributors had ever withdrawn, leaving a large pool of dormant savings. The changes aim to mobilise this capital for housing‑related consumption, easing household housing costs, supporting the real‑estate market and boosting related sectors such as construction and property services. Local pilots in cities including Shanghai, Shenzhen, Guangzhou, Suzhou, Jinan, Shenyang and Fuzhou have already raised loan caps and introduced rules for using the fund to pay property fees and renovation costs. Experts warn of short‑term cash‑flow pressures in some cities and the need for stronger fraud‑prevention mechanisms as the system expands.