Chinese authorities have asked Ping An Insurance Group to take a controlling stake in embattled Country Garden (2007. HK), the nation's biggest private property developer, four people familiar with the plan said.
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.
A spokesperson for Ping An (601318. SS) said the company had not been approached by the government and denied the information reported by Reuters.
Ping An has "not been asked by (the) Government to takeover Country Garden. We categorically deny this story. It is untrue," the company said in a statement to Reuters. It reiterated its denial in a public statement after Reuters first published this report.
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