Local Banks to Handle Housing Management Accounts

Housing Maintenance Fund to be Managed by Two Local BanksProperty owners in Shenzhen will see more money placed in their housing accounts when two local banks have taken over management of the city special housing maintenance fund. The fund amounting to more than 6 billion yuan manages money collected from property owners to help maintain public facilities.

The value added rate of a yearly return tops 5 percent if placed under local bank management. The returns will then be deposited in the property owners housing maintenance accounts. Shenzhen branches of the China Construction Bank and Ping An Bank have signed a contract that entrusted the two branches to manage the 6.7 billion yuan fund. Property owners of multi story buildings without elevators needs to pay 1.5 yuan a month for every square meter they own as maintenance fee every day. Buildings with elevators will pay 2.5 yuan per square meter. This mean a someone owning a 100 square meter property needs to pay a maintenance fee of 150 to 250 yuan every month.

The fund special account was initialized in 2006, by a branch of China Construction Bank which is the only institution managing the maintenance fund for the past five years. This year branches of the China Construction Bank and Ping An Bank out bidded several commercial banks in an open competition for a new contract. According to the contract, the fund’s yearly return rate will surpass 5 percent, which is more that the yield of a three year fixed deposit. Fund returns will be then evenly distributed to property owner’s accounts.

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