Hong Kong citizens working in mainland China can now join China's Housing Provident Fund, the Hong Kong and Macau Affairs Office of the State Council has said.
The Fund helps workers purchase and maintain a home, allowing them to apply for preferential rate mortgages, withdraw money to pay for repairs and maintenance or subsidise their rent.
According to The Standard, funds can be transferred when a worker changes employment, and any unused sum is withdrawn upon retirement, with Hong Kong citizens allowed to take unused contributions with them when they return home. They will be offered the same payment rates and procedures as mainlanders.
Foreign workers – including those from Hong Kong – are obliged to contribute to five insurance schemes - pension, medical, unemployment, maternity and work-related injury. The payment basis of the housing fund varies between provinces and cities.
For example, in Shanghai, authorities check the average pay of employees and adjust the upper limit of payments every year. Employers and employees contribute the same amount to the fund: 7% of an individual’s wage.
If an employee decides to join the Housing Provident Fund and make the required monthly payments to it, they can deduct the figure from their income tax. They can also gain a lower interest rate on part of their loan when buying property on the mainland.
In addition, scholarships will now be offered to Hong Kong students attending mainland schools. The National Social Science Fund will also be open to Hong Kong and Macau researchers in higher education and research institutes.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
Hong Kong citizens working in mainland China can now join China's Housing Provident Fund, the Hong Kong and Macau Affairs Office of the State Council has said.
The Fund helps workers purchase and maintain a home, allowing them to apply for preferential rate mortgages, withdraw money to pay for repairs and maintenance or subsidise their rent.
According to The Standard, funds can be transferred when a worker changes employment, and any unused sum is withdrawn upon retirement, with Hong Kong citizens allowed to take unused contributions with them when they return home. They will be offered the same payment rates and procedures as mainlanders.
Foreign workers – including those from Hong Kong – are obliged to contribute to five insurance schemes - pension, medical, unemployment, maternity and work-related injury. The payment basis of the housing fund varies between provinces and cities.
For example, in Shanghai, authorities check the average pay of employees and adjust the upper limit of payments every year. Employers and employees contribute the same amount to the fund: 7% of an individual’s wage.
If an employee decides to join the Housing Provident Fund and make the required monthly payments to it, they can deduct the figure from their income tax. They can also gain a lower interest rate on part of their loan when buying property on the mainland.
In addition, scholarships will now be offered to Hong Kong students attending mainland schools. The National Social Science Fund will also be open to Hong Kong and Macau researchers in higher education and research institutes.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
