KE Holdings Inc – ADR (NYSE:BEKE) shares are trading lower by 3.8% to $15.74 Monday afternoon. Shares of several Chinese stocks are trading lower amid concerns over the country’s property sector following reports suggesting China Evergrande said it’s unable to issue new debt due to an ongoing investigation into its Hengda Real Estate subsidiary.
KE Holdings operates in the online real estate services sector, providing a platform for property listings, transactions and related services. A slowdown or instability in the property market, driven by concerns about Evergrande, can lead to reduced transaction volumes.
This would affect KE Holdings’ revenue, as its business relies on commissions and fees generated from property transactions.
What’s Going On?
Evergrande, the beleaguered Chinese property developer, said Friday that it was cancelling a creditor meeting scheduled early this week. It said that “sales had not been as expected”.
The announcement is the latest in a series of scandals to hit the Chinese financial behemoth. Mid-September, the domestic regulator approved a 50% sale of its insurance business China Evergrande Life into a special purpose vehicle owned by the Chinese state to free up cash.
Then last week, staff in the company’s wealth management division were detained by Shenzhen police…Read More
According to data from Benzinga Pro, BEKE has a 52-week high of $21.08 and a 52-week low of $9.09.
