China reforms Housing Provident Fund regulations to expand usage and coverage

China has announced significant reforms to the Housing Provident Fund Management Regulations, marking the largest adjustment since the regulations were first introduced. The new rules, set to take effect on September 20, 2026, aim to adapt the fund to modern housing needs, shifting focus from basic home ownership to broader living quality.

Key changes include expanding the scope of fund usage. The number of eligible withdrawal scenarios will increase from six to nine, now explicitly supporting home renovations and property management fees. This expansion is intended to stimulate the home improvement and service industries.

The reform also broadens coverage by allowing flexible workers, such as ride-hailing drivers and food delivery riders, to voluntarily participate in the system. Additionally, the regulations aim to improve administrative efficiency by simplifying withdrawal procedures, shortening loan approval times from 15 to 10 days, and promoting national mutual recognition of contribution records to facilitate easier use of funds across different cities.

As of the end of 2024, the national housing provident fund balance reached 10.9 trillion yuan. Local governments have already been proactive, with approximately 400 related policies introduced this year to optimize loan limits and usage.