(Yicai) Aug. 7 -- A source at Country Garden Holdings dismissed an online rumor that a local government team is stationed at China’s largest property developer, it has been reported. This is the third time that the builder has shot down a recent rumor about its operating conditions.

Information claiming that a working team led by a deputy mayor of Foshan city in Guangdong province is encamped at Country Garden is untrue, The Paper reported today, citing an unidentified person at the Foshan-based builder.

According to the information circulating on social media on Aug. 5, local government officials had entered Country Garden and asked the company to provide saleable onshore and offshore assets before considering supporting its bond issuance.

Shares of Country Garden [HKG: 2007] closed down 7.7 percent at HKD1.32 (17 US cents) each in Hong Kong today, having fallen almost 30 percent over six straight trading days.

Country Garden has been the subject of unconfirmed negative online information recently. According to a July 25 report by ET Net, a Hong Kong-based financial news outlet, auditor KPMG has been invited to carry out due diligence on the firm's assets and liabilities for unknown reasons. It cited unnamed market sources.

A rumor the day before said Country Garden will collapse soon, as founder Yang Guoqiang and his daughter Yang Huiyan, its chairperson, had left the country. Country Garden has denied both claims.

Editor: Peter Thomas