Publication Date



The Hutubi Rural Social Security Loan program is a policy innovation in a rural area of China by loaning savings in social security accounts back to peasants for them to purchase assets for agricultural and other development. In contrast to the nationwide recession in rural social security, this program has shown its success in proliferating rural social security funds and retaining social security participants. With a focus on the administrative data of the loan program, this study aims to provide an in-depth understanding of the loan program and examine how asset building is possible for the poor when institutional incentives are offered. The findings show that when proper policy incentives are provided, poor peasants can build assets. The Hutubi program may be a good model for other rural areas in China and other developing countries.

Document Type

Working Paper


Financial Inclusion


Global Asset Building


For the Chinese version of this Working Paper, see The paper was subsequently published: Guo, B., Huang, J., Sherraden, M., & Zou, L. (2008). Dual incentives and dual asset building: Policy implications of the Hutubi rural social security loan program in China. Journal of Social Policy, 37(3), 453–470. doi:10.1017/S0047279408001992

Original Citation

Guo, B., Huang, J., Sherraden, M., & Zou, L. (2007). Dual incentives and dual asset building: The Hutubi Rural Social Security loan program in China (CSD Working Paper No. 07-05). St. Louis, MO: Washington University, Center for Social Development.


China: Inclusive Asset-Based Policy


Rural, China, savings, GAP, institutional features, retirement, policy