BEIJING, May 17 -- China's central bank announced on Friday that it would establish a 300-billion-yuan (about 42.25 billion U.S. dollars) relending facility to support the government-subsidized housing project.

Local state-owned enterprises are encouraged to use the funds to buy reasonably-priced commercial homes that have completed construction, Tao Ling, an official with the People's Bank of China, told a press conference, adding that these homes will then be used to provide affordable housing.