Research On Problems Of Housing Provident Fund System

Housing plays an important role in people's production and life.People who have stable house can be more active in production and the creation of wealth. It is significant to have a stable and reliable house to improve people's quality of life. In the early days, China's housing level is very low.The whole society focus on the development of production in the social environment and the economic situation.The housing problems of urban residents and enterprises mainly rely on government welfare housing settlement. In the case of a lower average level of housing, housing demand is gradually increasing. After the reform and opening up and development of market economy, the market system began to play a role in the allocation of housing. In the role of the market mechanism, China's urban housing system is also implemented. In advancing the process of housing reform, the housing has changed from physical distribution to monetization distribution. In this process of change, the residents' purchase pressure increases.Housing provident fund system started in 1991, implemented in Shanghai, after twenty years of development, has covered most areas of China, and enterprises, to provide an institutional reform of the housing system security, but alsot alleviate the urban residents' urchase financial pressure to some extent.Housing provident fund system gradually began to play a role in the establishment of housing security, but it also has the characteristics of the housing finance system. Because the housing accumulation fund system is an important part of housing security and social security. Therefore, it should first have fairness and redistributive characteristics. In order to play the role of social security, housing provident fund system should mainly guarantee low-income class' housing needs. By the reason of their own limitations, low-income class has limited housing affordability. Housing provident fund system should cover low-income people from all aspects of the loan, use and system design.In the process of development, since the system location and system objectives are not clear, although it guarantee the housing needs of many people, but the development is not smooth. The prominent problem among them is the fund accumulation. There are many shortcomings in housing provident fund accumulation, investment, usage and management, such as limited coverage, inequality of coverage groups, widened wealth gap, the non-standardized fund management, fund devaluation problems and so on. Problems of the housing fund not only affect the smooth implementation of the system, and will also affect the level of trust in the system of the masses. Researches in China and abroad are about the effect of housing provident fund system to the national housing policy, supportment for the housing function, the influence on the housing market.The system of housing provident fund also has a preliminary comprehensive analysis, but a comprehensive research of the problems of public provident fund is less. Those researches overlook some key issues, such as how the fairness of housing provident fund system is? How is the efficiency of housing fund, how to protect the system efficiently operate? What the housing provident fund interest rate is? How to ensure housing provident fund loans and how the amount of usage is determined? How is the problem existed in the management of housing provident fund? How is the housing security level for different people? How is the housing fund investment situation? How to ensure the safety of the fund? How to use value-added income housing fund? Do it support housing purchases whether or not? The solutions of key problems can help us have a deeper understanding of housing provident fund system, the goal of housing provident fund system, improving the system of housing provident fund. This paper will, on the basis of researches in China and abroad, using the fund management theory to analyze the problems existing in the system of housing provident fund.The full text has six chapters. Chapter 1 introduces the research background and significance of the research. It is the premise and basis of this research. At the same time it introduces the research status at home and abroad.Section 2 is a overview of the system and a theoretical evaluation of the housing provident fund system and system development process. Chapter 3 is about the necessity of reforming the system of housing provident fund, the introduction of system development course and the evaluation of the system.Chapter 4 is about the problems in all aspects of housing fund system coverage, deposit, loan, investment operation, value-added benefits, management and investment. Chapter 5 is to have a typical representative of the housing finance system, drawing on the experience of other countries, to improve the housing provident fund system in China. Chapter 6 is about the objective of the housing provident fund system, proposes policy analysis and recommendations for improving the housing provident fund system in China.The full text is divided into three main parts:the problems existing in the system of housing provident fund, lessons from the foreign system model, countermeasures and suggestions of these problems.First part is about the problems existing in the system of housing provident fund.The problems existing in the system of housing provident fund are focused on coverage, deposit, loan, investment, value-added benefits and supervision over the usage and management.Housing provident fund coverage problem is mainly about the the gap between urban and rural areas, between regions, between different industries.The system only covers town workers, the rural residents are out of the system. These people also have demand for housing. The housing provident fund system develops rapidly in the east, but it develops slowly in the central and western regions. Administrative units and good benefit enterprises and institutions pay timely, rural migrant workers and individual industrial and commercial households pay less or pay housing provident fund not in a timely manner.The deposite problem of housing provident fund is mainly about deposit system and the deposit interest rates. The pay rates of housing provident fund system generally range between 5% and 12%, the highest proportion of pay and the minimum pay rate has a disparity of 7%. Housing provident fund takes wages as base, coupled with the wages of amplification, will cause a big difference between the payment.Loan problems of housing provident fund are existied in the groups with the actual demand. The usage problems of housing provident fund are mainly that the actual demand group didn't get the guarantee fund.The policy of housing provident in favour of high earners to use housing provident fund loans,leading the actual harm of low-income earners. Low-income groups in the housing accumulation fund accumulation amount actually used by the high-income people. The complex loan procedures can make some borrowers to choose business loans, poor fluidity of loans also influence its role in system.The problems existing in the housing provident fund investment is the narrow investment scope.The income from investment is the housing accumulation fund loan interest income, accumulation of bank interest income and Treasury yields.The management center of housing provident fund does not have the ability of investment.The capital devaluation is serious.The ownership of value-added benefits of housing provident fund is not clear. It also lack of value-added income distribution to guarantee justice.Analyzing fund management and supervision of housing provident fund, the management system of housing provident fund mainly exist problems such as multiple management, management confusion, low professional level of personnel. Housing provident fund supervision mainly has the problem of information opacity.The second part is to take international typical housing financial system countries experience for reference, such as US government Guided mode, German housing savings contract mode and the Singapore's central provident fund system mode.US policy on public housing for low-income segments of the population is mainly to support the construction and implementation of specific housing projects, provide rental housing and public housing for low-income families.Germany takes the loan amount and the amount of savings-linked policies. The loan amount is determined by the evaluation of of the participants'contribution.The government also provide reward savings, savings and commercial policy of residential housing loans combination to solve the housing problems. Singapore's Central Provident Fund system model is to adopt adjusted pay rate based on economic development level and CPF members'age, housing, pension, medical insurance integrated security system. In the whole process of financing housing fund, it forms a virtuous cycle and effective use of funds.The significance for China's housing fund system is to choose the right housing security according to our country's economic and social situation, to improve primary and secondary housing market, to play a catalytic role in the government system.The third part is about the improvement measures of problems existing in the system of housing provident fund. Housing provident fund system is an integral part of the social security system, it should be positioned in service in low-income groups.The improvement strategy of housing provident fund system is to expand the coverage of the housing provident fund system to rural and low-income groups, while exploring multi-level housing security policies and measures, in order to play a role in housing security housing accumulation fund system for the low-income people.Measures to improve the housing provident fund deposit is to make housing provident fund contribution rate in coordination with other social insurance programs. Measures to improve the amount of the loan is based on different contributions of different deposit status, according to lenders'work patterns and income situation, to extend the loan period, providing preferential lending policies to support low-income groups. It is to increase housing fund lending support to small and medium-sized housing and lower housing prices for the first suite. Measures to improve the housing provident fund investment is to make a balance of the security principle, the principle of profitability and liquidity principle, to take the pension fund investment patterns for reference, while expanding the scope of use of housing provident fund. Measures to improve the use of value-added benefits are the establishment of internal income distribution mechanism, policies to support the use of subsidized loans for low-income families purchase, using the benefits for public housing construction. In order to improve the management and supervision,it should take separation of powers of decision-making, administration and investment, unified housing provident fund management system.It should take strict,complete risk control system and strengthen supervision and coordination of various departments.