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  "docSlug": "b32b6e967105",
  "documentTitle": "KE Holdings (BEKE)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-12-16 00:00:00",
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      "kind": "callout",
      "text": "In the critical new home sales category, the primary driver of revenues, we estimate that BEKE overstated GTV by ~126% in 2Q-3Q 2021.",
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      "text": "GTV inflation: 126%",
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      "kind": "paragraph",
      "text": "For example, in BEKE's primary market, Shanghai, it claims to have 21,000 agents. But SAIC data for its three Shanghai brokerage subsidiaries show only 9,998 employees, indicating that BEKE is significantly inflating its agent count.",
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      "kind": "paragraph",
      "text": "Even Agent Count Overstated. BEKE's is a multivariate fraud, with layers of deception metastasizing throughout its business and representations to investors.",
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      "text": "Data Collected from BEKE's Platform Indicates Massive New Home GTV and Revenue Fabrication. We conclude that BEKE is massively inflating the GTV of new and existing home sales... we estimate that BEKE overstated GTV by ~126% in 2Q-3Q 2021.",
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      "kind": "paragraph",
      "text": "Sham Acquisition. One of the hallmarks of US-listed Chinese companies that have collapsed amid evidence of fraud is the use of sham transactions to funnel shareholder money and burn off non-existent cash balances.",
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      "kind": "source-note",
      "text": "1 SAIC data is from QiChaCha. 2 Our program captured the transaction data on BEKE's platform from May 25 to October 22, 2021. 3 BEKE, F-1 Prospectus and 2020 Annual Report",
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