Fangdd Network (NASDAQ: DUO) stock is up 15% after- and pre- market. DUO stock is not up on the basis of any specific news - this is about the general relief over the Chinese property market. This is more like the 15% rise in Country Garden than the over 100% rise in Sunac China. As we say, it’s something happening at the market, or macroeconomic level, not at the firm or company one.
As we’ve said before about Fangdd Network: “As to what is done at Fangdd: “Fangdd Network Group Ltd., an investment holding company, provides real estate information services through online platforms in the People’s Republic of China. It operates Property Cloud, a software as a service solution for real estate sellers. The company also operates platforms for real estate agents, including Duoduo Sales, which offers real estate agents with instant access to marketplace functionalities and allows them to conduct transactions on the go; Duoduo Cloud Sales, which connects agents to property database and buyer base” and so on. Given the travails in the Chinese property market not all that much of a surprise to see that DUO hasn’t been doing all that well.”
That thing about the market not working well goes both ways of course.
Fangdd Network stock price from Google Finance
We still don’t really know what is going to happen within the China Mainland property market. A standard view is that most of the developers are broke. Also, that allowing them all to go bust and the market values to crash would cause considerable - regime shaking - political unrest. So, there are noises about what the CCP is going to do to make sure they don’t all go bust.
But what, exactly? That’s still unclear. It’s also not uncertain that what is decided upon will actually work. But the idea that something will be done is taking firm root. Which is obviously good for a company like Fangdd that operates a real estate portal. Thus the DUO stock price move.
