It is revealed that Chinese officials have asked insurance companies China to China ChinaPing An obtained a controlling stake in real estate developer Country Garden.
Reuters on Wednesday (November 8) quoted people familiar with the matter that the Chinese State Council has instructed the Guangdong Provincial Government, where the above two companies are located to assist in arranging this rescue plan for Country Garden by China.
According to the surging news, Ping An of China issued a statement saying that Reuters reports that it is completely inconsistent with the facts, and the company has never received any relevant requirements for government departments or institutions."Earlier, when the company received relevant inquiries, it clarified to Reuters in writing, but Reuters still insisted on issuing related unreal reports that Ping An of China is deeply regrettable."
DeadlineAt 3:12 pm on Wednesday, the stocks listed on Ping An of Ping An in Hong Kong fell 4.67%.As for Country Garden's stock price, it rose 6.76%.
As of the end of June this year, the total liabilities of Country Garden, which fell into a financial predicament, were 1.4 trillion yuan (about 260 billion yuan).
Reuters quoted people familiar with the matter, saying that the official hopes that any risks brought by Country Garden's financial issues should not spread to a wider economic field.People familiar with the matter said that Ping An of China has been asked to provide details of the rescue plan.
In addition, people familiar with the matter revealed that the negotiations between the official and the core leaders of China began at the end of August and are still in the early stage.
People familiar with the matter also said that Ping An of China has been asked to conduct due diligence on Country Garden, and added that the official understands that the insurance company is a listed company responsible for shareholders.
People familiar with the matter said that in September, the Ping An of China and the local government of Guangdong had negotiated on the rescue of Country Garden.People familiar with the matter also mentioned that the talks between Ping An and the officials of China are led by officials of the Financial Marketing Department of the Central Bank of China.
Interest people added that Country Garden and the National Financial Supervision Bureau of China also participated in the talks and revealed that the official hopes that Ping An of Ping An can hold more than 50%of Country Garden in Country Garden.
Reuters reported that Country Garden's largest shareholder Yang Huiyan, the daughter of the co -founder Yang Guoqiang, holds about 52%.
