The Central Bank "new Deal" (yf [2005] 61) The Impact Of The Housing Provident Fund Business

The housing common reserve fund is the fund submitted by workers for housing in the long run. The function of the system is to provide a policy-oriented housing loan for the living houses of workers with the guideline of "low deposit and low loan", which requires mutual assistance and social security.The new policy adopted by the central bank on March 16th 2005 has altered the original mode of regulation and adjustment and aims to achieve a healthy running of the real estate market by adjusting the anticipation for the real estate market.This essay focuses on the influence of the new policy of the central bank on housing common reserve fund and the measures that may be employed to cope with the status quo.The new policy adopted by the central bank exerts influence upon the price anticipation by house purchasers, whereas the need to purchase house encompasses efficient needs and speculation needs. A lower anticipation for the house prices in the future shall not only eliminate part of the speculation needs, but also prolong part of the efficient needs. As the loan of housing common reserve fund renders available financial aid to efficient needs, it will also be affected by the new policy adopted by the central bank.The purpose of the new policy adopted by the central bank is to put away with the foam in the real estate market and to strike out on house speculators so that the price system of real estate shall return to a reasonable level. However, the influences by the new policy adopted by the central bank on housing common reserve fund do not conform to the target of the macro-regulation by the State. Therefore, discordance has emerged between the goal of the new policy adopted by the central bank and the effects per se with regard to the needs for living houses.Eventually, the author holds that the institutions in charge of housing common reserve fund shall adopt measures concerning submission, loan and capital structure of housing common reserve fund so that the regulation target set by the central bank could be accomplished on the one hand and the superiority of the system of housing common reserve fund might be manifested on the other hand.