China Authorities Request Ping An to Take Controlling Stake in Troubled Developer Country Garden

Ping An Insurance denies reports of government request to take controlling stake in debt-laden developer Country Garden, while Chinese authorities aim to protect wider economy from the real estate sector's instability.

Chinese authorities have reportedly asked Ping An Insurance to take a controlling stake in Country Garden, the nation's largest private property developer which is currently facing financial troubles. This move could be one of China's largest interventions so far to support its heavily indebted property sector, a significant part of its economy.
Despite the report, Ping An Insurance publicly denied receiving any government instruction to take over Country Garden. The denial comes as the proposed state-managed rescue could be a significant move to protect the broader economy from possible spillovers of the unstable real estate sector.
Country Garden, which up until this year was China's largest developer by sales, had total liabilities of 1.4 trillion yuan ($191.46 billion) by end of June. The company has more than 3,000 projects under development throughout the country, which is nearly four times that of Evergrande, the world's most indebted developer.
Ping An Insurance was established in 1988 and is one of China's top insurance groups by market value. They have vast assets amounting to 11.45 trillion yuan ($1.57 trillion) and over 229 million retail customers, with key investments in diverse segments including real estate.
If Ping An were to take over Country Garden, this could become a model for rescuing other financially troubled developers, indicating China's inclination towards using large enterprises to stabilize the volatile sectors of the economy. Ping An Insurance's current stake in Country Garden stood at 4.99% as of August 11.

South China Morning Post