(Beijing/Guangzhou Comprehensive) Sources said that the Chinese government requires the insurance industry giant China Ping An Insurance Group to hold the largest national real estate company Country Garden, which is in debt dilemma.China's Ping An on Wednesday (November 8) responded that the relevant reports were completely inconsistent with the facts.
Reuters quoted four sources on Wednesday to make the above reports.Two of the people familiar with the matter said that the Chinese State Council has instructed the Guangdong Provincial Government, where the above two companies are located to assist in arranging the rescue plan of China Ping An's Country Garden.
Sources said that the Chinese government and the core management of Ping An Group have taken over the Nagoyi Garden's negotiations since August this year and are still undergoing negotiations.Relevant discussions are led by officials of the financial market department of the People's Bank of China, and the National Financial Supervision and Administration Bureau also participated in it. Country Garden is also included.In September this year, Ping An of China and the Guangdong Provincial Government also negotiated some of the rescue plans.
Sources said that the official hopes of Chinese officials will not spread to any risks caused by the liquidity of Country Garden, and it is expected that the problem of this real estate company can be resolved in Guangdong Province.One of the insurance companies, Ping An of China is a natural choice because its headquarters is located in Guangdong and has always been the main shareholder of Country Garden.
On the other hand, Chinese officials are also anxious to allow the proposed acquisition to become a reference template for other real estate developers who have fallen into financial dilemma.
Sources said that Ping An of China was required to conduct due diligence on Country Garden, and officially acknowledged that Ping An Insurance was a listed company after all and must be responsible for shareholders.Although it was instructed by the government to rescue Country Garden, Ping An enjoys a certain room for negotiations and has room for negotiations on any transaction terms.
A person who directly understands the plan and a person who listened to the plan briefing said that the relevant departments hoped to hold more than 50%of the shares in Ping An.
At present, Country Garden Chairman Yang Huiyan is the company's largest shareholder and holds about 52%of Country Garden.
Four sources revealed that if Ping An Group becomes the controlling shareholder of Country Garden, the relevant departments hope that Ping An Group will injected capital in stages to alleviate the liquidity of Country Garden.
If Ping An's capital injection takes care of Country Garden, this will be one of the largest intervention measures adopted by relevant departments to support liabilities.Previously, the official policies and measures were mainly concentrated in reduce housing loan interest rates , etc., so that the public is more likelyThe official attitude seems to have changed.The Shenzhen State -owned Assets Supervision and Administration Commission on Monday (November 6) has a rare vocalization of Vanke, China's second largest housing company, which has continued to fall in bond prices. Vanke's major shareholders and state -owned enterprise Shenzhen Metro Corporation also stated that it has prepared more than 10 billion yuan (18.92The market tools of 100 million) increase cash flow to it.
However, Ping An of China denied reports from Reuters.According to Surging News, Ping An of China issued a statement on Wednesday that the relevant reports are completely inconsistent with the facts, and Ping An of China has never received any relevant requirements for government departments and institutions.The News Office of the State Council and the Guangdong Provincial Government did not respond to the request of comment, while Country Garden refused to comment.
Ping An Group was the second largest shareholder of Country Garden, but has gradually reduced its holdings in recent years.The 21st Century Business Herald also quoted Ping An Group on Wednesday that the company no longer held Country Garden's shares as of the end of the third quarter.
Affected by the above -mentioned acquisition negotiations, Ping An Insurance's stocks listed on Wednesday continued to fall on Wednesday, which once fell 5.7%. At the lowest level in the past year, the closing fell 5.41%, and Country Garden's stock price closed more than 12%.
As of the end of June this year, Country Garden's liabilities were 1.4 trillion yuan.This real estate company I missed the final period of paying 15 million US dollars (S $ 20.35 million)., the market believes that its total of about $ 11 billion of offshore bonds is facing the risk of breach of contract.
