China plans to lower the proportion of its housing fund.  Two aims: cut companies' costs and let workers have more money to spend. That's the word from the Ministry of Housing and Urban-Rural Development.

The ministry said Friday that it is working on a rule to cap the housing fund proportion at 12 percent. The ministry said that any companies implementing higher rates should lower them to the cap. The rule would be temporary and takes effect on May 1st for the savings deducted from their pay that people use to buy their homes.

The ministry also said that companies with struggling operations could apply to suspend making housing fund deposits until they get back on solid financial ground. Companies and their employees pay into the housing fund.

The proportion of the housing fund now ranges between 5 to 20 percent, with the companies deciding the level.