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 plan 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.