Strategic Reorientation of the Housing Provident Fund System in the People's Republic of China

The objective of this report is to respond to the request of the Ministry of Housing and Urban-Rural Development (MOHURD), to assess the Housing Provident Fund (HPF) system, and provide recommendations on its positioning, strategy and future role in the overall housing policy. The report focuses on a strategic review of the HPF system and its strategy, mission, and operational structure, and then analyses the market in which the individual HPFs operate. It provides recommendations on the realignment of the HPF system in view of the changed market conditions. The recommendations encompass the overall policy goal of the HPF system, including regulation and supervision, modifications to the current products offered by the HPFs, and improvements in the operational structure (e.g. organizational set-up, technical capabilities of management and staff, liquidity and risk management). The report concludes by citing international experiences with housing provident systems/credit linked savings systems in order to highlight useful links with the Chinese HPF system.