China Merchants Securities (CMSC) and its wholly-owned asset management subsidiary will set up a bail-out plan worth 2.01 billion yuan (US$290 million) to help the development of private enterprise, The Paper reported.

This collective asset management plan is designed to help prospective privately-owned listed companies manage “share pledge” risk amid the recent market turbulence and support the high-quality development of the private economy.

In order to deal with the latter risks, various means can be utilized, such as debt swaps, equity purchases as well as mergers and acquisitions.

CMSC is one of the 11 securities brokerage firms that are helping to bail out A-share companies feeling the heat.

The Securities Association of China said recently that 11 brokers, as co-sponsors, initiated a series of asset management plans worth 21 billion yuan. The total fund size was later increased to 25.5 billion yuan.