Goldman Sachs released a research report stating that KE Holdings-W (02423.HK) (BEKE.US) H shares price surged by 13% on Monday (September 30), with a daily turnover of 0.919 billion yuan, bringing the total turnover of the stock in the past 183 calendar days to 6.7 billion yuan, exceeding the threshold of 6 billion yuan for Southbound trading. The bank believes that the liquidity of the stock meets the requirements for inclusion in the Shanghai-Hong Kong Stock Connect, becoming the first Chinese internet ADR to obtain dual-listed status on the main boards. The bank estimates that KE Holdings could be included in the Southbound trading as early as next week, which is expected to further boost the stock price from a technical standpoint.

Goldman Sachs believes that KE Holdings will continue to expand its leadership position in the Chinese market. At the same time, the bank holds a positive view on the company's new businesses such as building renovation, decoration, residential rental & leasing services, expecting these businesses to account for more than 45% of the revenue by 2026. In comparison, the percentage was only 25% in 2023, and it is expected to contribute to profits starting in 2026. Additionally, as of the end of June, the group holds net cash of 10.5 billion US dollars, and is committed to achieving a shareholder return of 6% to 7% annually through stock buybacks and dividends. The bank has a "buy" rating for the group, with a target price of 54 yuan for the H shares.