Research On The Payment Of Shanghai Housing Provident Fund

By referring to the Central Housing Provident Fund of Singapore, Shanghai established initially its own housing provident fund in year 1991, basing on the actual domestic situation, which became the first city set up such system in China. With more than 20 years development, housing provident fund system has been becoming the important part of housing security system in China, which gives huge contribution and support to the populace for housing improvement.Shanghai, as the original city of housing provident fund system, has been with expanding the fund payment scale. Till end of year 2014, total cumulated funds reached 492.7 Billion RMB, deposited with total 209.3K paying units and 6.0296 million paying employees. With the continuous expanding scale of the housing provident fund in Shanghai, there have been appearing payment problems, which result in some query and arguments by the public, such as, “the fund is only for some people benefit”, “the fund robs the rich and assists the poor”, etc. Payment of housing provident is the base of fund system, which also guarantees the further draw and loan. Therefore, there must be effective solutions to such payment issues, in order to ensure the continuous development of the fund system.This article focuses the study view onto the Shanghai housing provident fund payment. Before raising the issues, it firstly reviews the background of establishing the housing provident fund in Shanghai and its development, including its characteristic and achievements. Then, this article gives analysis to current payment situation of Shanghai housing provident fund: firstly, analyzing paymenyt policy, ratio and scale change; secondly, analyzing the payment data; thirdly, analyzing the survey result from organizations and individuals. Based on the analysis, four current payment issues in Shanghai are raised: solely peyment policy with less diversity; low coverage & ratio of peyment; increasing payment gap; out of step with current developing network. These four issues directly impact the system development.Furthermore, the article provides objective analysis to each root cause of the issues and explores its origin. Based on different causes, article also provides according solutions: 1) innovating the fund management with payment policy diversity, to be realized by the means of differentiating ratio and methods, expanding the voluntary payment scale, promoting quota payment from specific populations. 2) enlarging the payment scale and increase the coverage ratio to be realized by improving attractiveness of the system. 3) reducing the payment gap and emphasizing the fairness to be realized by set up the payment floorage or canceling additional fund. 4) completing payment method and improving payment convenience to be realized by strengthening the control of authorized bank and expanding the on-line business transactions.Payment is the base of fund system. It is only an armchair strategist if without real payment. Therefore, the importance decides the necessary solutions, in order to provide enough guarantee for maximizing function of the system, and for more people to benefit from the system advantage.