KE Holdings (BEKE) Fell Due To the Weakening of the Chinese Property Market

Artisan Partners, an investment management company, released its “Artisan Developing World Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Investor Class) returned 14.40% compared to 11.99% for the MSCI Emerging Markets Index. The Artisan Developing World Fund has returned 192.04% cumulatively, since June 30, 2015, compared to 60.03% for the index. Equities rose in the quarter despite uncertainty around US trade initiatives, strife in longer-dated bond markets, shifts in global currency preferences, and flash points in geopolitical conditions. US markets outperformed international markets in local currency terms for the same period. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Artisan Developing World Fund highlighted stocks such as KE Holdings Inc. (NYSE:BEKE). KE Holdings Inc. (NYSE:BEKE) engages in operating an integrated online and offline platform. The one-month return of KE Holdings Inc. (NYSE:BEKE) was -5.15%, and its shares gained 16.53% of their value over the last 52 weeks. On July 8, 2025, KE Holdings Inc. (NYSE:BEKE) stock closed at $18.05 per share, with a market capitalization of $21.577 billion.

Artisan Developing World Fund stated the following regarding KE Holdings Inc. (NYSE:BEKE) in its second quarter 2025 investor letter:

“Bottom contributors to performance for the quarter included Meituan, PDD Holdings, Chinese real estate platform KE Holdings Inc. (NYSE:BEKE), LVMH, Kanzhun (BOSS). BEKE fell due to the sequential weakening of the Chinese property market after a very strong recovery in Q1, despite share gains in both the new and existing home markets.”

KE Holdings (BEKE) Falls as Firm Hints at Share Issuance

Aerial shot of a modern real estate development with residential homes.

KE Holdings Inc. (NYSE:BEKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held KE Holdings Inc. (NYSE:BEKE) at the end of the first quarter, compared to 47 in the previous quarter. While we acknowledge the risk and potential of BEKE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BEKE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered KE Holdings Inc. (NYSE:BEKE) and shared billionaire Lei Zhang’s stock picks with huge upside potential. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.