A report that Chinese authorities asked Ping An Insurance Group Co. to rescue Country Garden Holdings Co. sent the insurer’s stock sliding, wiping out $3.1 billion from its valuation.
Distressed developer Country Garden, on the other hand, jumped 12% to add $320 million to its market cap.
Ping An promptly denied the news, saying it has no plans to acquire the Chinese builder. Nonetheless, its stock may continue to face selling pressure as traders piled into a put option after the news, betting that shares will drop below HK$36 apiece. That is 6.5% below Wednesday’s close.
Photograph: Signage at the Ping An International Financial Center in Beijing, China, on Saturday, April 22, 2023. Photo credit: Bloomberg
Related:
Was this article valuable?
Here are more articles you may enjoy.
How Niche Insurance Shielded Bad Bunny From Bad Weather 
Three Sentenced in Bear-Suit Attacks Insurance Fraud Case 
Chubb Q1 Net Income Increases 74% on Fewer Catastrophe Losses 
Viewpoint: Why Brokers Have Little to Fear and Everything to Gain From AI 
