ZCZC
BCN-22
CHINA-HUSING-DEPOSIT
China’s housing provident fund deposit up 17.7 pct in 2017
BEIJING, Jun. 4, 2018 (BSS/Xinhua) – Total deposit of China’s housing
provident fund reached 12.5 trillion yuan (3 trillion U.S. dollars ) by the
end of last year, up 17.7 percent year on year, official data showed.
Annual deposit grew 13.1 percent year on year to 1.9 trillion yuan in
2017, marking a five-year straight double-digit growth, according to a report
released by the Ministry of Housing and Urban-rural Development, the Ministry
of Finance and the People’s Bank of China.
By the end of 2017, the fund’s total balance was 5.2 trillion yuan, up
13.1 percent year on year, and the number of employers and employees
contributing to the fund grew by 10.1 percent and 5.2 percent year on year,
respectively.
The housing provident fund is a long-term housing savings plan made up of
compulsory monthly deposits by both employers and employees. It can only be
used by employees on house-related expenses and, if unused, is returned to
them when they retire or stop working.
It has effectively reduced housing cost for employees, helping them save
194 billion yuan as the housing provident fund loans offer lower interest
rates than commercial loans, according to the report.
According to a recent survey by the China Youth Daily, the main uses of
housing provident fund are for home loans, downpayments, rent and
renovations, with 67.4 percent of 2,025 respondents opting for using the fund
for home loans.
BSS/XINHUA/HR/1145