Advertisement
Ping An Insurance denies reports it will take over Country Garden and its mountain of debts, declares zero stake in troubled developer
- Country Garden defaulted in late October after it failed to pay US$15.4 million of interest on a dollar-denominated bond
- Ping An said it has ‘never received any relevant proposals or requests from any relevant governmental authorities’ with regard to Country Garden
Reading Time:2 minutes
Why you can trust SCMP
Ping An Insurance (Group) has denied a Reuters report citing sources that Beijing has asked it to take over Country Garden Holdings and assume its mountain of debts. The nation’s biggest insurer also said it no longer held any stake in the distressed developer.
Advertisement
“The company has never received any relevant proposals or requests from any relevant governmental authorities [or] agencies, and the company has no transaction plan or discussion in connection therewith,” it said in a Hong Kong stock exchange filing on Wednesday. “As of today, the company does not hold any shares of Country Garden Holdings.”
The Reuters report was “completely untrue”, the insurer said, adding that the clarification could prevent shareholders and potential investors from being misled.
Country Garden defaulted late last month after failing to pay a US$15.4 million interest on a dollar-denominated bond, shortly after it warned investors it was facing a liquidity crunch and would miss servicing its offshore debts.
10:57
Boom, bust and borrow: Has China’s housing market tanked?
Boom, bust and borrow: Has China’s housing market tanked?
Country Garden had 257.9 billion yuan (US$35.4 billion) of interest-bearing debt on June 30, according to its latest interim report. About 119 billion yuan of them were in foreign currencies, including US dollar and Hong Kong dollar, mostly in senior notes and corporate bonds. Its total liabilities stood at 1.3 trillion yuan versus 1.43 trillion yuan at the end of 2022.
Advertisement
The latest filing suggests the Ping An group may have sold its stake in the troubled Foshan-based developer over the past three months. The insurer, through its asset management unit in Hong Kong, last reported owning a 4.99 per cent stake in Country Garden on August 11, according to its stock exchange disclosure.
Advertisement