Exclusive: Ping An asked to take controlling stake in Country Garden by China authorities, sources reveal

Chinese authorities have reportedly urged Ping An Insurance Group to take a controlling stake in Country Garden, China’s largest private property developer. According to four individuals familiar with the situation, the State Council, headed by Premier Li Qiang, has instructed the Guangdong local government to facilitate the rescue plan. Ping An, when approached for an interview, denied the report.

Ping An Insurance Group, one of China’s largest insurance firms, experienced a decrease in its stock market price following the report, with officials expressing interest in the prospective holding of more than 50% for the struggling Country Garden. The property developer, facing liquidity challenges and a hefty $11 billion debt, is seen as a crucial concern for authorities.

Discussions between Ping An and government officials are ongoing, with the People’s Bank of China and the National Financial Regulatory Administration playing pivotal roles. Renegotiation of terms for the potential deal remains a possibility. Country Garden’s liquidity problems are of particular concern to local authorities in Guangdong, making Ping An, as a major shareholder based in the region, a natural choice for a potential rescue.

In the past, Ping An has played a key role in similar financial rescues, such as its involvement in state-guided aid for Peking University Founder Group.

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