This study examines the influence of state-owned shareholders’ participation on the stock price crash risk of private enterprises. In order to increase income and alleviate financing constraints, private enterprises have great motivation to carry out earnings management and undertake higher risks. The improvement of earnings management level leads to the decline of information transparency, and the improvement of risk bearing level will also increase the operating risks of enterprises. The participation of state-owned shareholders will ease the degree of earnings management of private enterprises, reduce the level of risk tolerance of private enterprises, and then restrain the plunge of private enterprises’ stock prices. This study finds that the state-owned shareholders’ participation in private enterprises can significantly reduce the risk of stock price collapse of private enterprises. The further test results show that state-owned shareholders play a role by reducing the earnings management degree and risk bearing level of private enterprises.