More than 60 cities across China have adjusted their housing provident fund policies since the start of 2026, widening access and expanding permissible uses for the mandatory savings schemes, according to an update published by the State Council on June 14.
The changes cover loan ceilings, minimum down payment ratios, and withdrawal eligibility, with several localities now permitting fund withdrawals for home renovation costs, property management fees, and urban renewal projects, the government said.
Shenyang, the capital of Liaoning province, introduced seven new housing provident fund measures including provisions for home modifications and aging-friendly retrofits. The city's policies allow residents to withdraw funds for renovations that improve accessibility for elderly household members, reflecting broader demographic pressures from China's aging population.
Multiple cities have also opened the housing provident fund system to workers in non-traditional employment arrangements. Yichang, Jinan, and Liuzhou have removed restrictions on scheme participation for flexible workers, allowing delivery drivers, couriers, ride-hailing drivers, and self-employed individuals below retirement age to open contribution accounts online.
The expansion addresses a long-standing gap in China's housing finance system, where the provident fund had been primarily restricted to salaried employees enrolled by their employers. China's gig economy has grown significantly in recent years, leaving millions of independent workers without access to the subsidized housing loans the scheme provides.
Cross-regional portability of housing provident fund benefits has also improved. The Yangtze River Delta region now offers unified processing for deposits, loan applications, and withdrawals across all its constituent provinces and municipalities. In the Greater Bay Area, multiple cities have established cross-city service channels. Xi'an and Qinghai province have implemented mutual recognition for housing provident fund loans, and the combined Sichuan-Chongqing region has processed more than 71 billion yuan (approximately US$9.8 billion) in cross-regional housing provident fund loans to date.
"The provincial-level housing provident fund will expand the scope of withdrawals and further support housing consumption," the government said in a related policy document, characterising the changes as part of broader efforts to stabilise the housing market.
China's housing provident fund system, established in the 1990s, requires employers and employees to contribute a percentage of wages into dedicated accounts that can be used for home purchases, construction, or rental payments at below-market interest rates. The system has faced criticism for disproportionately benefiting higher-income workers who can afford homeownership, while offering limited support to lower-income renters.
The latest round of adjustments follows a prolonged downturn in China's real estate sector, with the government introducing a series of measures since 2024 aimed at reviving demand, including mortgage rate cuts and down payment reductions.
Sources: gov.cn/SCIO
