E House Holdings 2Q15 Earnings Call Notes

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“As expected” the Chinese property market has started to warm up driven by government policies

“As expected the overall Chinese property market started to warm up since the end of March driven in part by the governments loosened credit policies and purchasing restrictions in certain cities. Despite recent Chinese Stock Market volatility the real estate sector has stayed relatively stable so far. As a result we are on track to achieve our overall revenue target set at the beginning of the year.”

Chinese real estate market has been quite healthy

“Yes, the first half of this year, the Chinese real estate market overall, it has been quite healthy. We are pleased with the state of the market and transaction volume can recovery in the fourth quarter, and continue into the summer. The month of July and August, we see this growth taper out to some extent which is normal. In a normal year, the month of July and August are a small — minor quiet period in terms of real estate market activities. And everyone is now gearing up and waiting for the next — traditionally a strong transaction season in September and October. So far, you know, everything that has happened is quite healthy.”

Lower interest rates will be good for us

“Yes, so the rate cut as well as the decrease in the required reserve ratio were mainly aimed to give a boost to the macro economy, and everyone is obviously — it has gotten the potential impact on the domestic stock market, but one thing that is clear is that this — the drop in interest rate is — will be good, will be beneficial to the real estate market”

I don’t think stock market drop will cause people to favor real estate over stocks

“I don’t think the recent drop in the stock market will again prompt many people to reconsider their investment strategy to favor real estate purchase more than stock market investment.”