Ping An loses $2.1 bln in market value, China property rallies on Country Garden rescue report

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China property stocks rallied and Ping An Insurance Group shares slumped to a one-year low on Wednesday after Reuters reported Chinese authorities had asked the firm to take a controlling stake in troubled developer Country Garden.

Company logo of Ping An Insurance Group is shown at a news conference following the company's announcement of its annual results in Hong Kong, China March 16, 2016. REUTERS/Bobby Yip/File PhotoHONG KONG, Nov 8 - China property stocks rallied and Ping An Insurance Group shares slumped to a one-year low on Wednesday after Reuters reported Chinese authorities had asked the firm to take a

Country Garden shares rose to a one-month high and closed up more than 12%. Its dollar debts also rallied.said the company had not been approached by the government and denied the information reported by Reuters, which cited four sources familiar with the plan. "Such a move should mitigate or control the risks in the market," said Lu Wenxi, analyst at property agency Centaline.

In debt markets, some of Country Garden's shorter term bonds, such as a dollar bond maturing early in 2024 , were as much as 2 cents firmer at around 6 cents on the dollar.

 

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