Chinese state-owned enterprises are buying foreclosed properties in a bid to slam the brakes on the country's property crisis, Reuters reported Friday.

The intervention by state-owned companies is also a sign government efforts for the sector are finally taking off, albeit slowly, the report said.

However, while the efforts could reduce oversupply, it could also prolong the crisis hitting the floor as the assets are being sold at huge discounts instead of being fully written off, according to the report, citing experts.

"You're simply putting your finger in a hole in the dam," Reuters quoted Sam Radwan, the CEO of Chicago-based real estate consultancy Enhance International, as saying.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)