China Enlists Ping An to Rescue Country Garden in Major State Intervention to Prop Up Struggling Property Sector
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Chinese authorities asked Ping An Insurance to take control of Country Garden, the nation's largest private property developer, in a state-engineered rescue.
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This would be a major intervention to support the cash-strapped, highly indebted property sector which is 25% of China's economy.
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China has taken several steps this year to shore up the property sector, including easing borrowing rules, lowering mortgage rates, and encouraging banks to keep financing open.
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Measures include lifting home-buying curbs, removing price caps, and transforming underdeveloped urban areas to support property investment.
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The central bank has cut key lending rates and extended a November rescue package, showing authorities' commitment to prevent a broader financial crisis.