Ye Kai / Yicai2017-05-12
(Yicai Global) May 12 -- China’s Housing Provident Fund surpassed CNY11 trillion (USD1.59 trillion) in March, with the country’s economic powerhouse Guangdong province making up 10 percent of the total.
Individuals contributed some 89 percent to the figure, the Ministry of Housing and Urban-Rural Development said yesterday.
Contributions to the fund vary among Chinese provinces due to different levels of economic development in each. Generally, provinces with a more advanced economy record higher offerings to the fund.
The southern province of Guangdong had contributed CNY1.09 trillion to the fund at the end of last year, making it the first time a province surpassed the CNY1 trillion mark, data from the province showed.
China introduced the Housing Provident Fund in the 1990s. Individuals and companies they work for are required to make contributions to the fund based on a percentage of their salary. The fund serves as a long-term individual saving account for employees to buy homes. Workers may also apply for loans from the fund at interest rates lower than those charged by commercial banks for mortgages.