State Council Issues Revision to Housing Provident Fund Regulations
China's State Council published its decision to revise the Housing Provident Fund Management Regulations on August 18, 2026, with the changes set to take effect on September 20, 2026. The revision, comprising 20 articles, represents the most significant expansion of Housing Provident Fund (HPF) utilisation rights in recent history, aiming to increase the flexibility and practical utility of the programme for China's 150+ million HPF account holders.
Four Key Areas of Reform
The revision addresses four principal areas:
- Expanded Withdrawal Scope: The income-ratio threshold for rent withdrawal has been removed entirely. Account holders can now also withdraw HPF funds for home decoration, property management fees, and other government-approved housing consumption scenarios.
- New Investment Channel: HPF management centres are now permitted to invest HPF funds in policy-based financial bonds — a new asset class that was previously prohibited, potentially improving fund returns for account holders over time.
- Streamlined Administration: Procedures for withdrawal applications and mortgage loan reviews have been simplified, with cross-regional verification of HPF payment records now mandated nationwide, enabling smoother transfers and remote mortgage applications.
- Risk Management: Enhanced oversight provisions have been introduced to safeguard fund safety under the expanded operating framework.
Market Reaction: Property and Service Stocks Surge
On August 19, the day after the announcement, A-share property service companies rallied sharply.我爱我家 (000560.SZ) and南都物业 (002310.SZ) hit the daily price limit, while the broader property services sub-sector (中信房地产服务) rose as much as 3.90% intraday. Analysts attributed the surge to market expectations that expanded HPF withdrawal rights would stimulate home renovation spending and reduce the liquidity constraints faced by existing homeowners.
Beijing and Shanghai Integrate HPF Changes into Local Policy
Beijing moved quickly to incorporate the national HPF revisions into its own August 2026 policy adjustments, raising the dual-account-holder first-home HPF loan ceiling to 2.4 million yuan (from the previous 1.2 million yuan), with an upper limit of 3.4 million yuan for multi-child families. The city also introduced a renovation withdrawal option with a maximum of 250,000 yuan — directly aligned with the new national regulations.
Shanghai similarly incorporated expanded HPF withdrawal flexibility into its August 20 "Hustle Bao Tiao" policy package, allowing HPF funds to be drawn for renovation and home furnishing expenses.