Published by ChinaMNC · Dafang

Bijie Housing Provident Fund Opens Renovation Withdrawals: What Foreign Founders Need to Know

Bijie introduces new rules allowing housing provident fund withdrawals for home renovation, affecting expatriate employees and company compliance. Key points for foreign founders operating in China.

Practical Takeaways for Foreign Founders

Foreign founders running companies in China should note that housing provident fund (HPF) rules can affect employee benefits and payroll compliance. A new policy from Bijie City allows HPF withdrawals for home renovation, which may impact how you structure employee benefits and handle HR administration. While the policy directly concerns individual contributors, it reflects broader trends in China's social security and housing fund management that multinational companies must monitor.

• Employee benefits: Expatriate and local employees participating in HPF may now access funds for renovation, potentially affecting salary packaging and retention strategies.
• Compliance: Ensure your China entity stays updated on local HPF regulations, as these can vary by city and affect payroll calculations.
• Administration: If you employ staff in Bijie, familiarize yourself with the new withdrawal procedures to assist HR teams.

What the New Policy Covers

The Bijie Housing Provident Fund Management Center announced that from October 23, 2026, contributors can withdraw HPF savings for renovating self-occupied housing. This follows the State Council's amendment to the Housing Provident Fund Management Regulations (Order No. 844). The policy aims to support diverse housing needs and improve living conditions.

For foreign founders, this signals that local governments are expanding the use of HPF accounts, which may influence how you design employee benefit packages. If your company contributes to HPF for employees in Bijie, they may now have more flexibility in using these funds.

Key Provisions and Their Implications

Eligibility and Application

Applicants must be the property owner or their spouse. For jointly owned property, either spouse can apply. If both spouses apply together, the total withdrawal cannot exceed the approved amount. If only one applies, the other is deemed to have waived their right for that property, and the renovation withdrawal eligibility for that property is considered used and cannot be reused. Couples with multiple homes can apply for up to two properties separately, each within their account balance and approved quota.

For foreign founders, this means that if you employ expatriates who own property in Bijie, they may be able to use HPF savings for renovation. However, coordination with spouses and property ownership details is required.

Timing

Applications must be submitted between 6 months and 5 years from the date of home purchase. If the deadline falls between September 20, 2026, and December 31, 2026, it is extended by 6 months.

This window is important for HR planning: employees may need time off or assistance to complete applications.

Withdrawal Limits

The withdrawal amount is calculated at RMB 1,200 per square meter of the property's floor area, capped at RMB 150,000 per property. If the applicant has no outstanding HPF loan in Bijie, the withdrawal cannot exceed their HPF account balance. If there is an outstanding HPF loan, the withdrawal is limited to 60% of the account balance. For married applicants, the quota is based on the combined ownership share; for unmarried or divorced applicants, it is based on their individual share. Non-spousal co-owners determine quotas based on their respective shares, as stated in the property certificate or purchase contract. If shares are not specified, they are deemed equal.

These limits affect financial planning for employees and may influence salary negotiation.

Required Documents

Basic documents include: valid ID, personal bank card (Class I debit card), marriage certificate (or divorce certificate/court judgment for divorced), and a commitment letter. Additional documents depend on property type: for pre-sale housing, a registered purchase contract or property certificate; for other housing, purchase contracts, auction confirmation, relocation agreements, etc., plus property certificate. For divorce-related property division, provide effective court judgment or notarized divorce agreement. For renovation proof, provide renovation contract, deposit receipt, or invoice. The center may request additional verification.

Foreign founders should ensure HR teams are aware of these document requirements to assist employees.

Definitions: Ongoing vs. New Renovation

"Ongoing renovation" refers to renovations started after September 2025 and not completed by September 20, 2026. "New renovation" refers to renovations started on or after September 20, 2026.

This distinction may affect application timing and documentation.

Compliance and Audits

Applicants must provide truthful information and sign a commitment letter. The center may conduct post-disbursement audits and random checks. If no actual renovation occurred or if fraudulent materials were used, the center can order full refund and impose penalties; serious cases may be referred to authorities. Scrutiny is stricter for properties with area or use not suitable for living, multiple transactions within a year, frequent marriage changes, or non-spousal/non-direct relative co-ownership. The center may interview, request additional evidence, send inquiries, visit property management or construction companies, or conduct on-site inspections. Applicants must cooperate; failure to do so without justification may lead to suspension of future withdrawals.

For companies, this underscores the importance of compliance in employee benefit claims—fraud could impact company reputation.

Consultation and Appointments

For questions, call the 12329 hotline or local management department numbers. Due to high demand, the center may implement appointment-based queuing.

Foreign founders should inform employees about these channels.

What This Means for Your China Company Registration

This policy does not directly alter company registration procedures, but it highlights the importance of understanding local social security and housing fund regulations. When registering a company in China, foreign founders must enroll employees in HPF, and local policies like this can affect payroll and benefits. Choosing the right entity structure (e.g., wholly foreign-owned enterprise or joint venture) and understanding local obligations is crucial. Consulting local experts can help navigate these nuances.

Next Steps

Stay informed about local HPF policies in cities where you operate. Ensure your HR and finance teams are aware of withdrawal options for employees. For comprehensive assistance with company registration and ongoing compliance in China, including social security and housing fund matters, contact ChinaMNC.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.