Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan, ISBN: 978-1-922069-61-0
Homeownership in Urban China: An Empirical Study of Housing
Provident Fund
Weizhuo Wang1, Christopher Gan2, Zhaohua Li3 and Minh Chau Tran4
The relentless effort of the government to control rising house prices in urban China have
differential impacts on the various segments of the population due to their differential demand
for homeownership. Hence, it is important for the government to have a better understanding
of the underlying demand for homeownership, especially with respect to the different
demographic variables and accessibility to loans and housing providence funds (HPF), in
order to provide a more comprehensive strategy and to address some of the equity issues
that may arise from these countermeasures. To this effect, this paper develop and estimate a
binary logit model of homeownership participation in HPF program, and accessibility to HPF
loans using a variety of demographic variables. Our findings document that people with longer
duration of employment and households who are married are more likely to own a house. The
results also show that gender, marital status, education level, high annual income and
duration of employment are significantly related to HPF loan use for homeownership.
JEL Classification: G10, G20, G21
Keywords: housing provident fund, homeownership, loans, logistic regression
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1
PhD Student, Faculty of Commerce, Department of Accounting, Finance and Economics, PO Box 85084, Lincoln
University, Christchurch, New Zealand, Tel: 64-3-423-0287, Email: weizhuowang@hotmail.com
2
Corresponding Author, Professor in Accounting and Finance, Faculty of Commerce, Department of Accounting,
Economics and Finance, PO Box 85084, Lincoln University, Canterbury, New Zealand, Tel: 64-3-423-0227, Fax: 643-325-3847, Email: Christopher.Gan@lincoln.ac.nz
3
Senior Lecturer, Faculty of Commerce, Department of Accounting, Economics and Finance, PO Box 85084, Lincoln
University, Canterbury, New Zealand, Tel: 64-3-423-0232, Fax: 64-3-423-0221, Email: Zhaohua.Li@lincoln.ac.nz
4
Master Student, Faculty of Commerce, Department of Accounting, Finance and Economics, PO Box 85084, Lincoln
University, Christchurch, New Zealand, Tel: 64-3-423-0287, Email: tranminhchau.na@gmail.com