(Yicai Global) July 30 -- Shares in KE Holdings slumped yesterday after its majority shareholder said that it has irrevocably granted proxy voting rights to a partnership controlled by two of the company’s executives, completing the handover of power after the founder of China’s largest real estate agency passed away in May.

The company’s share price [NYSE: BEKE] plunged 13.65 percent to finish at USD23.15 yesterday. Its stock has halved since May 20.

Propitious Global Holdings is controlled by the Z&Z Trust whose beneficiaries are the immediate family members of deceased founder and chairman Zuo Hui. It holds 885 million ordinary shares in KE Holdings, equivalent to 76.8 percent of voting rights.

Propitious Global has now effectively passed control of the real estate giant from the founder’s family to Baihui Partners, which consists of Peng Yongdong, chairman and chief executive of KE Holdings, and Shan Yigang, who is an executive director.

The statement will eliminate market concerns that the company’s uncertain ownership may affect its decision-making ability and operations, Beijing News reported today, citing Steven Tsai, an internet analyst at Morgan Stanley.

Previously, Peng held 3.1 percent equity and 1 percent of voting rights, while Shan had 1.3 percent of shares and 0.4 percent voting rights. Before his death, Zuo owned a 38.8 percent stake and had 81.1 percent voting rights.

Editor: Kim Taylor