This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Chinese Property Dollar Bonds Rally after Government is Said to Tap Housing Provident Fund
June 11, 2025
China’s government is said to be tapping its housing provident fund in order to provide support to the housing market. The housing provident fund is a popular government savings program that is used to help people buy homes. This pool of funds is worth a sizeable RMB 10.9tn ($1.5tn), with sources noting that it provides an alternative to bank mortgages. As per Bloomberg, the provident fund surpassed banks in providing loans to people in 2024, having lent out nearly RMB 8.1tn ($1.1bn) in outstanding mortgages. This provident fund requires that both, employees and employers contribute monthly amounts into a pool that can be used to give mortgages that may often carry a lower interest rate than bank loans.
This measure comes at a time when banks’ margins are near record-lows, with weakening profit growth and rising non-performing assets. Bloomberg notes that the provident fund was historically underutilized, partly owing to many restrictions which have now been eased by many cities in China.
Following this, dollar bonds of several developers including the likes of Vanke, Longfor, GLP, Seazen and others rallied by over 1-2 points across their curves.
For more details, click here
Go back to Latest bond Market News
Related Posts:
Tumbling Brent Oil Drags Down Oil Sector Bonds
June 22, 2017
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.