Local state-owned enterprises, known as SOEs, are accelerating the purchase of equities in privately-owned public companies amid the recent turbulence of the A-share stock market, China Securities Journal reported.

According to calculations by the Journal, there are 37 listed firms that have been taken over by SOEs, and even more companies have introduced SOEs as strategic investors since 2018.

SOEs in 17 provinces have moved to stabilize the market by buying in the sell-off of A-shares. SOEs in Shenzhen, Shandong, Beijing, Henan and Hunan province have become the main players, taking in over a total 19 privately-owned public companies.

Among them, SOEs in Shenzhen city bought the most and moved the fastest. The Shenzhen municipal government has arranged tens of billions of special funds to reduce the risk of the stock pledge of Shenzhen A-share listed companies.