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The Chinese Housing Provident Fund

Author

Listed:
  • Richard J. Buttimer Jr.

    (The Belk College of Business Administration, the University of North Carolina at Charlotte, Department of Finance and Business Law, 340B Friday Building, 9201 University City Boulevard, Charlotte, NC 28223-0001)

  • Anthony Yanxiang Gu

    (State University of New York, Geneseo, 115 D South Hall, 1 College Circle, Geneseo, NY 14454)

  • Tyler T. Yang

    (IFE Group, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, (301) 309-6561)

Abstract

The Chinese government has embarked upon an effort to reduce the number of tenants living in publicly owned housing. This is a significant challenge for any government, but may be especially so for a country where private homeownership is a new option. Out of concern that many of its citizens could not afford to purchase their housing units, the Chinese government created the Housing Provident Fund. This program, which is similar to housing fund programs in other countries such as Thailand and Singapore, combines a 401(k)-like savings and retirement account with subsidized mortgage rates and price discounts to provide a mechanism through which an employee could save for, and eventually complete, a housing purchase.

Suggested Citation

  • Richard J. Buttimer Jr. & Anthony Yanxiang Gu & Tyler T. Yang, 2004. "The Chinese Housing Provident Fund," International Real Estate Review, Global Social Science Institute, vol. 7(1), pages 1-30.
    • Handle: RePEc:ire:issued:v:07:n:01:2004:p:1-30
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Kazuya Tani & Yoshiyuki Kikuchi & Hideo Takaoka & Shubin Lin, 2014. "Housing Acquisition Process for Public Housing and Commodity Housing in Shanghai: A Survey of Residents," International Real Estate Review, Global Social Science Institute, vol. 17(3), pages 415-444.
    2. Yilan Xu, 2017. "Mandatory savings, credit access and home ownership: The case of the housing provident fund," Urban Studies, Urban Studies Journal Limited, vol. 54(15), pages 3446-3463, November.
    3. Can Cui & Stan Geertman & Pieter Hooimeijer, 2015. "Residential Mobility of Skilled Migrants in Nanjing, China," Environment and Planning A, , vol. 47(3), pages 625-642, March.
    4. Tang, Mingzhe & Coulson, N. Edward, 2017. "The impact of China's housing provident fund on homeownership, housing consumption and housing investment," Regional Science and Urban Economics, Elsevier, vol. 63(C), pages 25-37.
    5. Claude Taffin & Roy Friedemann & Kim Kyung-Hwan, 2011. "Strategic Reorientation of the Housing Provident Fund System in the People's Republic of China," World Bank Publications - Reports 12780, The World Bank Group.
    6. Atella, Vincenzo & Brugiavini, Agar & Pace, Noemi, 2015. "The health care system reform in China: Effects on out-of-pocket expenses and saving," China Economic Review, Elsevier, vol. 34(C), pages 182-195.
    7. Qianwei Ying & Danglun Luo & Jie Chen, 2013. "The Determinants of Homeownership Affordability among the ‘Sandwich Class’: Empirical Findings from Guangzhou, China," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1870-1888, July.
    8. Liming Yao & Michael White & Alla Koblyakova, 2015. "House price appreciation and housing affordability: a study of younger households tenure choice in China," ERES eres2015_44, European Real Estate Society (ERES).
    9. Zhou, Xiaoqing, 2020. "A quantitative evaluation of the Housing Provident Fund program in China," China Economic Review, Elsevier, vol. 61(C).
    10. Hiroshi Sato & Terry Sicular & Ximing Yue, 2011. "Housing Ownership, Incomes, and Inequality in China, 2002-2007," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 201112, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    11. Kazuya Tani & Yoshiyuki Kikuchi & Hideo Takaoka & Shubin Lin, 2014. "Housing Acquisition Process for Public Housing and Commodity Housing in Shanghai: A Survey of Residents," International Real Estate Review, Asian Real Estate Society, vol. 17(3), pages 415-444.
    12. Xiang Zhang & Yanhuang Zheng & Chuanhao Tian, 2021. "Who Benefits from the Housing Provident Fund System in China? An Analysis of the Internal Rate of Return for Typical Employees with Different Incomes," Sustainability, MDPI, vol. 13(9), pages 1-18, April.

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    More about this item

    Keywords

    provident fund; housing finance; China housing;
    All these keywords.

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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