The paper summarizes the policies promulgated by both national and local governments to stimulate the property market development in 2008 and the general effects toward the market. It scrutinizes those stimulus policies of housing provident fund by local governments and analyzes the functioning mechanism. The paper concludes that the policy-maker’s anticipation for the positive effect by strengthening the housing provident mortgage loan policies was almost offset by the simultaneous interest rate cut in the 4th quarter of 2008. The paper finally comments on the housing provident fund policies trend in 2009 & 2010.