State Council Approves Housing Provident Fund Amendment, Expanding Withdrawal Uses and Coverage

The State Council executive meeting on July 31, 2026 reviewed and approved the Decision (Draft) of the State Council on Amending the Regulations on the Administration of Housing Provident Funds. The meeting said the housing provident fund system should better play its role, broaden the scope of withdrawal and use, expand institutional coverage, improve management and service efficiency, and meet residents' diversified housing consumption needs. China's urban development is shifting from large-scale incremental expansion to a stage focused on improving the quality and efficiency of the existing stock. People's housing needs are moving from "having a home" to "having a good home," and housing consumption is extending from home purchase and rental to home renovation, renewal, and maintenance, with a sharp rise in contributors' demand for decoration, upgrading, and repair of housing.

As of end-2024, cumulative housing provident fund deposits nationwide totaled RMB 327.94 trillion, with a deposit balance of RMB 10.93 trillion. In 2024, annual deposits amounted to RMB 3.63 trillion and withdrawals to RMB 2.77 trillion. The number of actual contributors was 176 million, while 81.27 million people made withdrawals, only 46.1% of contributors. Since the Regulations on the Administration of Housing Provident Funds took effect in 1999, the system has become an important part of the urban housing system. The focus of fund use has evolved from supporting housing construction to supporting individual home purchases, and then to meeting other housing consumption needs.

In June 2026, the Ministry of Housing and Urban-Rural Development released the revised draft of the Regulations on the Administration of Housing Provident Funds for public comment. The draft expands the withdrawal conditions from six to nine categories, adding renovation of self-occupied housing, payment of property management fees for self-occupied housing, and other housing consumption scenarios approved by the State Council. The revision also broadens contribution coverage, allowing individually owned businesses, part-time workers, and other flexible workers to participate voluntarily. On fund management, it improves the responsibilities of housing provident fund management committees, strengthens supervision, and clarifies the legal liabilities of management centers. On service efficiency, it shortens the loan approval period from 15 days to 10 days, strengthens digital capacity, improves cross-regional coordination mechanisms, and promotes mutual recognition and mutual lending.

This revision is another systematic upgrade of the Regulations after their promulgation in 1999 and revisions in 2002 and 2019, centered on making the system more inclusive, more effective, more convenient, and safer. Local governments have adjusted and optimized policies according to their own housing market conditions. According to incomplete statistics, more than 60 cities have continued to make efforts in loan quotas, down payment ratios, withdrawal scope, covered groups, and service innovation, specifying the use of housing provident funds for urban renewal, housing renovation and upgrading, and elevator installation. Some cities have raised withdrawal limits for age-friendly renovation, or allow children to withdraw provident funds to install elevators in their parents' homes.