Highlights

• The State Council promulgated the amended HPF Regulations on 18 Aug
  26, effective 20 Sep 26. Withdrawal purposes rise from six to nine, adding
  renovation of owner-occupied housing, property management fees and
  other housing consumption approved by the State Council. 
   
• The property fee channel addresses collection: The Top 100 average 
  collection rate fell from 94.2% in 2021 to 87.3% in 2025 while fee pricing 
  was flat. The renovation channel addresses demand for decoration inside
  community VAS and COPH carries the largest exposure at 46.7% of
  community VAS.
   

• The 15th property management Five-Year Plan targets a full-lifecycle housing safety system. The HPF reform is the funding leg of this agenda: Extending withdrawals to renovation and property fees now covers the full “buy, rent, renovate and maintain” lifecycle, supporting property managers’ fee collection, decoration and rental businesses over the long term. Maintain UNDERWEIGHT on the property management sector, with CR Mixc as our top pick. We would re-rate the sector on stronger-than-expected take-up of the two new purposes.

Analysis

• Adding renovation of own home and property fee in housing provident fund (HPF) withdrawals. The State Council promulgated the amended Regulations on the Administration of Housing Provident Fund on 18 Aug 26, effective 20 Sep 26. Withdrawal purposes rise from six to nine, adding renovation of owner-occupied housing, payment of property management fees on owner-occupied housing, and other housing consumption approved by the State Council. Withdrawal applications no longer need the employer to verify the claim or issue a certificate.