With dozens of diagrams and data details，the paper describes the update conditions and characteristics of housing provident fund（HPF）throughout China by the end of 2007. The HPF history and functions are reviewed briefly and the HPF system’s drawbacks of the purchase power depreciation，efficiency，beneficial coverage，management committee and supervising mechanism are analyzed. It suggests that HPF should re-function systematically towards the universal supportive housing financial system for all workers or employees. A series of innovative policies and measures are deliberately given including reform of HPF’s interest rate rule to the high-rate saving and low-rate lending，introduction of independent experts into HPF’s management committee，HPF mortgage insurance reform，etc.