The Chengdu municipal government has set up a 10-billion-yuan (US$1.44 billion) bailout fund to help to ease the liquidity crisis of listed companies, The Paper reported.

The government also pledged to make full use of relevant national financial policies and provide long-term financial support to companies by establishing special products or special private equity funds and issuing asset management plans or special bonds.

The government also encouraged commercial banks in Chengdu to actively apply for the central bank’s refinancing and rediscount.

Meanwhile, local state-owned enterprises (SOEs) are ordered to conduct business cooperation, resource integration as well as mergers and acquisitions with local listed firms.