BEIJING - CHINA has launched a housing subsidy scheme to assist urban residents in quake-hit Sichuan, state media reported.

The official Xinhua News Agency said late on Tuesday each urban family in the south-west Chinese province whose house was destroyed in the massive May 12 earthquake will receive a cash subsidy of 25,000 yuan (S$5,430).

The report said the quake survivors will also be able to buy apartments at lower prices and get a tax reduction for building new houses.

The government may also provide free housing to some survivors living below the poverty line, while those who lost their family can live in welfare homes and be given 35,000 yuan, the agency said.

The government has been rebuilding schools, roads and other infrastructure in Sichuan province, which is still recovering from the earthquake that killed nearly 70,000 and left 5 million homeless. -- AP