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  "documentTitle": "KE Holdings (BEKE)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2021-12-16 00:00:00",
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  "notes": "The slide uses a combination of quantitative data (percentages and store counts) and qualitative field research to expose fraudulent reporting practices.",
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      "text": "In this city alone, site visits and field work indicate that BEKE overstated the store count by 59% by keeping branch SAIC registrations current while not actually stores.",
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      "text": "Example: 7 SAIC Lianjia registrations in same area, but found only 2 and 1 was closed",
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      "text": "store count inflation: 59%",
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      "text": "We found that Lianjia store numbers in BEKE’s SEC filings generally align with the number of Lianjia stores registered in a given city’s SAIC. However, as our field work across China revealed, there were many stores with active SAIC registrations that did not exist.",
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      "text": "Of the 51 Lianjia stores we should have found in Langfang, 19 were ghost stores. In this city alone, site visits and field work indicate that BEKE overstated the store count by 59% by keeping branch SAIC registrations current while not actually stores.",
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      "kind": "paragraph",
      "text": "Using this methodology, we estimate that at least 9.1% of the stores listed on BEKE’s platform in its key market of Beijing are clone stores. In Xiamen and Haikou, we estimate that 41.5% and 32.1% of the stores are clones in those cities.",
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      "kind": "source-note",
      "text": "35 三河市廊坊市,河北 36 Chinese company information database 37 Chinese company information database. These stores were established on either May 25 or May 26 of 2017, with Song Xinghua 宋兴华 as their legal representative.",
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      "kind": "title",
      "text": "d. The Sanhe Langfang Case Study: SAIC Store Count Inflated by 59%",
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