Factbox-China's measures to shore up its indebted property sector
(Reuters) — Chinese authorities have asked Ping An Insurance Group to take a controlling stake in embattled Country Garden, the nation's biggest private property developer, sources said.
A state-engineered rescue of Country Garden by Ping An would be one of the most significant interventions to date by authorities to support the cash-squeezed and highly indebted property sector, which accounts for one-quarter of China's economic activity and has sparked fears of a broader financial crisis.
The following is a timeline of key measures authorities have taken this year.
Nov. 8 — Central bank Governor Pan Gongsheng said he would encourage financial institutions to keep bond and credit financing channels open to help address real estate sector weakness.
Nov. 7 — Shenzhen's state asset regulator and state-owned Shenzhen Metro pledged support for China Vanke with Shenzhen Metro saying it has prepared more than 10 billion yuan ($1.4 billion) worth of «market tools» to help with cashflow. Both are key shareholders in the developer.
Oct. 31 — China vowed to satisfy all reasonable financing needs of developers, regardless of whether they are private or state-owned firms. The statement was made at the Central Financial Work Conference, a twice-a-decade policy meeting.
Sept. 14 — China's central bank said it would cut the amount of cash that banks must hold as reserves for the second time this year to boost liquidity.
Sept 1. — China is set to take further action, sources said. Proposed measures include lifting home-purchasing curbs in non-core districts of major cities such as Beijing, Shanghai and Shenzhen and gradually removing price caps on new homes, they said.
Aug. 31 — China's central bank and financial regulator ease some
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