A Study On The Efficiency Of Housing Provident Fund

In the early1980s, the housing system began to reform comprehensively in China,as the way of housing allocation mechanism was changed from physical distributionto the currency--the housing provident fund system appeared. In1992, Tianjin wasthe second city which has established the particular system around the country,following Shanghai. After a couple of decades, Tianjin housing provident fund systemget a certain development and play a crucial role from different aspects such as: tosupport people or employees purchase houses, to construct affordable houses, topromote housing financial market and the real estate market. Meanwhile, there weresome problems in the provident fund scheme with the change of the objectiveeconomic environment.The low efficiency of housing provident fund became a highlighting issuebecause of the scale of the provident fund was continues growing, moreover, theparticular problem has become a kind of bottlenecks for a sustained and healthydevelopment of housing provident fund system. As a political financing of housing,the provident funds also need to optimize its structure and operational efficiency,improve its liquidity and profitability, in order to avoid serious waste of resources aswell as make damage to the individuals.The purpose of this article is to clearly explain the reform of the housing systemand housing provident fund system in our country by the analysis of the efficiencyand the investment direction of Tianjin provident fund. In addition, combined with thenational overall efficiency of housing provident fund, the paper aims to point out theexisted problems during the process of using the funds as well as try to offer rationalsuggestions for increasing the efficiency of the public housing accumulation fund.