Why is there a need to abolish the housing provident fund system? mp.weixin.qq.com/s/is-q71_ql_dk…
Huang Qifan's article on February 11 has attracted extensive attention. (mp.weixin.qq.com/s/xbodNdOU4weO…)
In order to deal with the impact of the epidemic on manufacturing, especially on small and medium-sized enterprises, he offered four proposals, the second of which referred to the abolition of the housing provident fund system, evoking widespread debate.
The #housing provident fund system has played a certain role for more than 20 years. However, only 1/10 of China's population is paying the housing provident fund, while merely 60% of the provident fund is in use, meaning over 800 billion yuan are laid idle on the account.
For further reform, in the short term, the contribution rate of the fund could be lowered to help improve income distribution, reduce the savings rate and release purchasing power, as well as easing the burden on general enterprises and increasing the revenue from #SOE profit.
In the medium and long term, abolishing the housing provident fund system, or transforming it into supplementary pension of enterprises, is an inevitable choice.
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