HK Stock Market Move | BEKE-W (02423) rises over 6%; policies drive accelerated recovery in second-hand home transactions; UBS is bullish on the company's potential excess returns.

BEKE-W (02423) rose over 6%, up 6.21% as of press time, at HK$48.22, with a turnover of HK$297 million. On the news front, on October 15, Shenzhen and Hangzhou introduced detailed rules related to the reform of the commercial housing sales system. With this, Beijing, Shanghai, Guangzhou, and Shenzhen have now all rolled out implementation rules, and the reform of commercial housing sales has entered a phase of full implementation. Separately, according to Founder, second-hand home transactions rebounded after the holiday and maintained a relatively high year-on-year growth rate. In the 41st week, second-hand home transactions across 20 key cities totaled 42,215 units, up 38.72% week-on-week and 18.94% year-on-year, with transaction volume remaining resilient, mainly affected by the housing interest subsidy policy before the National Day holiday. UBS previously pointed out that the market has overlooked KE Holdings' operational improvements during the five-year downturn in the property market. The company has strengthened agent productivity, platform capabilities, and cost efficiency, as reflected in its second-quarter results. As mainland housing prices stabilize and changes to the pre-sale policy benefit second-hand home transactions, investors are expected to focus more on KE Holdings' potential excess returns rather than merely on property market transaction volume.