(Yicai Global) May 26 -- Beike Zhaofang has denied a Reuters report that said Chinese regulators have begun a probe into the leading online real estate agency for unfair competition practices.

The news is fake, the Beijing-based company said via Weibo yesterday, without giving any further details.

Earlier the same day, Reuters had reported that China’s market regulator was investigating Beike for “suspected anti-competitive practices,” citing two people with knowledge of the matter. It said those practices included “forcing real estate developers to list housing information only on its platforms … a tactic known as ‘choose one from two.’”

Shares of Beike operator KE Holdings [NYSE:BEKE] sank 2.8 percent to close at USD50.55 in New York yesterday. The stock has fallen 18 percent this year.

KE’s founder Zuo Hui, who built his real estate brokerage empire from scratch to become one of the richest men in China, died suddenly last week from an undisclosed illness. The firm has since appointed a new chairman and executive director.

Beike was also accused earlier last month of monopolistic behavior, such as forcing vendors to choose between platforms, by Yao Jinbo, the chief executive officer of classifieds site 58.com. Yao urged the State Administration for Market Regulation to fine Beike CNY4 billion (USD625 million), in line with the standard penalty for such offences of 4 percent of sales.

Beike responded at the time by saying it has always operated in accordance with the law and that the firm continues to improve its compliance system and to drive the healthy development of the industry through technology.

China issued antitrust guidelines on the country’s platform economy in February, signaling strengthened enforcement against monopolistic behavior internet firms. A number of companies have been penalized, including internet titan Alibaba Group Holding, which was slapped with a record CNY18.2 billion (USD2.8 billion) fine last month for abusing its dominant market position.

Editor: Kim Taylor