China's State Council announced and implemented the revised 'Regulations on the Management of Housing Provident Funds' starting from the 20th, Chinese media reported. This revision expands the uses for provident funds exceeding a total of 10 trillion yuan (approximately 228.697 trillion yen) to include renovations and other purposes, and at the same time, expands the scope of the system to include workers who do not have standard employment contracts with companies.

According to China News Service (CNS), as of the end of 2024, the balance of housing provident funds across China reached 10.93 trillion yuan (approximately 249.9658 trillion yen). However, there were cases where accumulated funds could not be fully utilized for necessary housing-related expenditures, making the improvement of the system's convenience a challenge.

This revision, comprising 20 articles, comprehensively reviewed a system that has been in operation for over 20 years, including expanding the scope of fund withdrawal and utilization, streamlining management and services, strengthening risk management, and broadening the scope of eligibility.

The number of permissible withdrawal cases increased from 6 to 9, with home renovations, payment of home management fees, and other housing-related consumption approved by the State Council being newly added.

Conditions for rental housing were also relaxed. Previously, certain conditions were set regarding the proportion of rent to household salary income, but this restriction was abolished in the revision. As a result, housing provident funds can now be used for a wide range of housing-related expenses, including rent, home purchase, mortgage repayment, renovations, and management fees.

The scope of people who can use the system will also expand. In China, the number of 'flexible workers' who do not have standard employment contracts with companies, such as food delivery couriers, ride-hailing drivers, and online streamers, is increasing. Until now, the housing provident fund system primarily targeted employees working for companies and organizations, and the areas where flexible workers could participate were limited to certain pilot cities.

The revised regulations clarify that self-employed individuals, part-time workers, and other flexible workers can voluntarily join the housing provident fund and receive support based on the regulations. Food delivery couriers, ride-hailing drivers, freelance designers, and others will also be able to join and save housing funds on their own.

Procedures have also been simplified. Previously, when changing jobs across provinces, multiple procedures, such as obtaining certificates and undergoing reviews, were sometimes required to transfer housing provident funds to the new workplace.

Under the new system, withdrawal procedures will be revised, and the review period for loans utilizing housing provident funds will be shortened from 15 days to 10 days. Procedures for inter-regional fund transfers and housing loans will also be streamlined, and a mechanism will be established for mutual verification and approval of fund records nationwide.

For example, even when transferring jobs from Beijing to Shenzhen or returning to one's hometown to purchase a house, it will be easier to transfer previous fund accumulation records. This will enhance the convenience of the system for people who move between cities for work. (Edited by/Hyuga)