HONG KONG, Nov 9 (Reuters) - Shares of Chinese property giant Country Garden fell sharply early on Thursdaygiving up some of the previous day's big gains on the back of a report that Beijing had asked Ping An Insurance Group to take a controlling stake in the embattled homebuilder.

The broader Shanghai and Hong Kong stock markets were flat as investors weighed the developments in the property sector and other stimulus measures.

Property stocks has risen late on Wednesday after Reuters reported China's State Council has instructed the local government of Guangdong province to help arrange a rescue of Country Garden by Ping An.

Ping An subsequently said in a statement to Reuters it has "not been asked by (the) Government to takeover Country Garden".

Country Garden shares listed in Hong Kong dropped nearly 4% at the market open, following a 12% surge the previous day, before settling about 1% higher. Prices of Country Garden dollar bonds were unchanged.

Stocks of other Chinese developers were lower, with the Hang Seng Mainland Properties Index down about 2%, led by a decline in China Evergrande Group and CIFI Holdings shares.

Ping An's Hong Kong-listed shares fell more than 1% to a one-year low, before paring some losses.

Hong Kong's Hang Seng Index and China's blue chip CSI300 were largely flat. (Reporting by Summer Zhen; Editing by Lincol Feast.)