China-based real estate services provider Beike Zhaofang responds to layoffs in Shanghai
Published: Oct 12, 2021 11:23 AM
KE Holdings Photo: VCG

KE Holdings Photo: VCG

China-based real estate services provider Beike Zhaofang said the company is readjusting the financial business in Shanghai due to the changed industry environment after it is reported to have laid off an entire team in Shanghai. 

The employees involved in the work adjustment will be properly arranged in strict compliance with relevant laws and regulations, and will be given priority in internal transfer opportunities, the company said in a statement sent to the Global Times on Tuesday.

The real estate market has cooled in China this year as a result of the upgraded real estate financial regulation.

China's top market regulator outlined "three red lines" in guiding market activity aimed to avoid excessive financing last year.

Under the rule, developers are required to ensure a liability-to-asset ratio of under 70 percent, a net gearing ratio of less than 100 percent and a cash-to-short-term debt ratio of at least one, the recent speculation surrounding developer Evergrande is in part due to its failure to meet these standards. 

The transaction areas for newly built commercial housing in key monitored cities decreased by 33 percent during the past 7-day National Day holidays or the Golden Week compared with the same period in 2020, with buyers' willingness dipping into the market softer than expected, according to statistics published by the China Real Estate Index System (CREIS).