- SouFun (NYSE:SFUN) has announced a 40% price cut on subscription fees for secondary listing customers (a high-margin business that's 25% of revenue), Deutsche reports. The firm sees this as a "major downside surprise for the market," and is downgrading SouFun to Hold.
- Deutsche also thinks SouFun is "facing deteriorating economics around its SouFun card business." It attributes this to aggressive competition in tier-1 cities, and a "land-grabbing strategy in lower-tier cities along with deepening geographical penetration."
- E-House (EJ -5.8%) and Leju (LEJU -6.6%) are again going in the same direction as SouFun. Shares of all 3 companies fell on Tuesday following downbeat land sale data.