China will loosen access to its housing provident fund, a pool worth as much as CNY 10.9 trillion ($1.6 trillion), as the property downturn and weak consumption weigh on the economy. Revised regulations taking effect next month will allow residents to use provident fund savings for major housing expenses including decoration and renovation, while also easing rules on withdrawals for rent. The changes come as property development investment fell 19.2% year-on-year in the first seven months, residential investment declined 19.1%, and July home prices across 70 major cities dropped 3.2%. The policy also allows provident fund management entities to buy policy bank bonds and gives the State Council final authority over provident fund mortgage rates. China Index Holdings said the latter could enable more flexible rate adjustments, while noting that more than 80 local governments have increased provident-fund-backed borrowing limits this year. The measures are the first concrete policy response after Premier Li Qiang called for stronger support, but economists warn that drawing down forced savings could reduce future home down payments and may not spur renovation spending while jobs and economic prospects remain uncertain.