Shares of KE Holdings Inc. (BEKE), a leading integrated online and offline platform for housing transactions in China, soared 23.49% on Wednesday, outperforming the broader market. The rally was fueled by growing optimism surrounding the potential impact of recent Federal Reserve interest rate cuts on the housing sector.
The Federal Reserve's decision to cut interest rates by 50 basis points earlier this month is expected to have a positive effect on the housing market. Lower mortgage rates could spur more homebuyers to enter the market, increasing demand for real estate services provided by companies like KE Holdings.
Analysts believe that the rate cut could ease financing conditions for homebuilders, encouraging them to ramp up construction and alleviate the chronic shortage of housing supply. Additionally, existing homeowners who were previously locked into their mortgages may now be motivated to sell their properties, further increasing inventory and market activity.