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China’s real estate market is experiencing a downturn, but analysts are turning their attention to KE Holdings, a housing transaction and services platform. The company, known as Beike in Mandarin Chinese, is listed in the U.S. under the ticker “BEKE” and operates the popular Lianjia platform for apartment renters in major Chinese cities. Despite a 38% increase in its U.S.-traded shares in 2024, Chinese property Stocks in Hong Kong have only seen a gain of under 3% for the year. KE Holdings is expected to benefit from recent government support measures in 2025, with analysts at Jefferies giving the stock a buy rating and a price target of $30, representing a potential upside of nearly 34%.

President Xi Jinping’s efforts to stabilize the real estate market, along with continued government support, have resulted in a surge in real estate transactions in major Chinese cities. However, China’s property developers are now facing a market with existing inventory and an aging population, posing challenges for the industry. Bank of America Securities analysts predict a further 10% decrease in home prices before stabilization, while also noting that KE Holdings has a strong market share in existing and new home brokerage channels in China. The company’s Hong Kong-listed shares could soon be eligible for inclusion in a program that allows mainland Chinese investors to buy Stocks in Hong Kong.

Goldman Sachs analysts view KE as a beneficiary of recent policy easing and see potential for growth in the company’s profit outlook. With a strong cash position and commitment to shareholder returns, KE Holdings is seen as a buy with an attractive valuation. Goldman has a price target of $6.95 for the company’s Hong Kong-listed shares and $21 for its U.S.-listed shares.

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