HK Stock Market Move | BEKE-W(02423) rises nearly 5% as Bank of America indicates its risk-return is more attractive, upgrades rating and target price.

BEKE-W (02423) rose nearly 5%, as of the time of writing, it rose 4.74% to 60.75 Hong Kong dollars, with a turnover of 1.01 billion Hong Kong dollars. On the news front, data from the Ministry of Housing and Urban-Rural Development's "National Real Estate Market Monitoring System" showed that in October, the total volume of new commercial housing and second-hand housing transactions in the country increased by 3.9% year-on-year, achieving growth for the first time after 8 consecutive months of decline since February of this year. A research report from Bank of America Merrill Lynch pointed out that Beike is a major beneficiary of recent Chinese policy shifts and potential cyclical recoveries. Bank of America Merrill Lynch stated that the group has high exposure in high-quality segmented markets, and both its first-hand and second-hand market shares are increasing, so it is expected to outperform market growth in this recovery and in the long run. The bank believes that the risk-return profile of Beike has become more attractive. The bank raised the group's target price from 62 Hong Kong dollars to 73 Hong Kong dollars, upgraded the rating from "neutral" to "buy," and expects dividends to rise.