Take a Look at Beike’s Fund Management

This company has a lot going on. While its core home-transactions business is straightforward, renovation and furnishing accounts for over 8 percent of revenue. It has also been closing stores to preserve cash flow while simultaneously borrowing heavily from banks—at a relatively low rate of 3.58 percent—and then investing in ultra-stable wealth-management products yielding an average of 3.2 percent. That narrow spread secures steady cash flow in an era of highly volatile real estate, allowing it to hold more than RMB 60 billion in cash.

Why Did Beike's Stock Soar 105% Despite a 166% Widening of Losses and the Closure of More Than 10,000 Stores?