China eases housing fund access rules to boost consumption

China has introduced the first major revision in years to management rules for its massive housing provident fund, broadening the $1.5 trillion forced-savings scheme’s usage to help unlock dormant capital and stimulate consumption, reports Caixin.

The revised rules, taking effect September 20, expand the fund’s withdrawal scenarios and extend coverage to flexible and gig workers. 

Analysts say the revamp shifts the fund from a mainly home-buying tool to broader housing financial infrastructure, freeing up locked household cash to support economic growth as the property market undergoes profound changes.