KE Holdings (NYSE:BEKE) stock dropped as much as 6.7% in Thursday trading after the Chinese real estate platform posted weaker-than-expected Q3 revenue as the new home market continued bottoming while the existing home market stayed relatively stable.

By Thursday midday trading in New York, the stock pared much of the loss, slipping 0.5%, as the company, also known as Beike, said it's seeing signs of improvement.

"In October, transaction volumes on our platform rebounded significantly, signaling the start of the market recovery," said Chairman and CEO Stanley Yongdong Peng.

Q3 net revenue of RMB 22.6B (US$3.22B vs. $3.28B consensus) rose 27% from a year ago, gross margin of 22.7% vs.27.4% a year ago, and adjusted net income declined to RMB 1.79B (US$254M) from RMB 2.15B a year earlier.

"Home transaction services demonstrated a stable revenue performance. The monetization capability of our new home transaction services has been further strengthened," said Chief Financial Officer Tao Xu.

Revenue from home renovation and furnishing rose 33% Y/Y to RMB 4.21B, while revenue from home rental services surged 118% to RMB 3.94B.

Total gross transaction value increased by 13% to RMB 736.8B (US$105.0B) in Q3, primarily from the recovery of the existing home transaction market, the company's growth strategy, and improved market coverage capabilities.

Xu also said Beike (NYSE:BEKE) increased its standards for resource allocation and prudent management. "We will continue to focus on the fundamentals of our business, ensuring strict adherence to risk controls and maintaining healthy cash flow, while fully supporting the growth of our ‘one body, three wings’ businesses," he said.