China authorities ask Ping An to take controlling stake in Country Garden

<p>Reuters Exclusive-China authorities ask Ping An to take controlling stake in Country Garden, sources say</p><p><a href="https://piqsuite.com/reuters/exclusive-china-authorities-ask-ping-an-to-take-controlling-stake-in-country-garden-sources-say" target="_blank" rel="nofollow">FULL STORY</a></p><p>Chinese authorities have asked Ping An Insurance Group to take a controlling stake in embattled Country Garden, the nation's biggest private property developer, four people familiar with the plan said. </p><p>China's State Council, which is headed by Premier Li Qiang, has instructed the local government of Guangdong province, where both companies are based, to help arrange a rescue of Country Garden by Ping An, said two of the sources who have direct knowledge of the matter.</p><p>A state-engineered rescue of Country Garden by Ping An would be one of the most significant interventions to date by authorities to support the cash-squeezed and highly indebted property sector, which accounts for one-quarter of China's economic activity and has sparked fears of a broader financial crisis.</p>

This article was written by Ryan Paisey at www.forexlive.com.