Ping An records $2.1bn in loses

1 min read

Chinese property stocks experienced a notable surge in value, while Ping An Insurance Group shares took a significant hit, reaching a one-year low on Wednesday. These developments were prompted by a Reuters report indicating that Chinese authorities had urged Ping An to acquire a controlling stake in the beleaguered developer, Country Garden.

The Hong Kong-listed shares of Ping An suffered a sharp decline of 5.4%, marking their most substantial daily drop in over a year. This plunge resulted in the loss of nearly $2.1 billion in market capitalisation. The day’s trading activity saw the highest turnover in nearly a year.

On the other hand, Country Garden’s shares saw a considerable upswing, reaching a one-month high and concluding the day with a gain of more than 12%. In addition to the stock rally, the dollar-denominated debts of Country Garden also experienced an increase in value.

These contrasting movements in the stock market underscore the market’s sensitivity to news related to Chinese property developers and the potential measures taken by authorities to address challenges within the sector. The situation with Ping An and Country Garden serves as a significant development in China’s real estate market and has had a noticeable impact on both companies’ stock prices and market capitalisation.