UPDATE 2-E-House China sees less impact from regulations in Q4
* Q3 adj earnings $0.16/ADS vs est $0.10/ADS
* Q3 rev $88.6 mln vs est $81.2 mln
* Sees Q4 rev $115-$117 mln vs est $104.0 mln
* Shares up 4 pct (Recasts; adds background, analyst comment, share movement)
By Divya Sharma
BANGALORE, Nov 11 (Reuters) - E-House China Holding Ltd (EJ.N) forecast fourth-quarter revenue above market estimates and said China's latest move to cool the real estate market was less severe on transaction volume so far in the quarter.
The Shanghai-based real estate services company's results in the second and third quarters were hurt after China raised mortgage rates and down payment requirements to nip speculation and limit credit in real estate markets in April.
E-House, however, said the quotas on new purchases and further restrictions on mortgage loans announced in October have hit volume, but not as in the previous quarter.
E-House, however, said the measures announced in October, including quotas on new purchases and further restrictions on mortgage loans, has caused a smaller sequential decrease in transaction volume and that demand remains strong.
William Blair & Co analyst Brandon Dobell said uncertainty keeps the Chinese consumer away from buying a residence, but this time the market had anticipated some of the measures.
"The measures in October in part were more enforcement of existing measures," Dobell said.
As E-House diversifies into more tier-2 cities, the policies tend to have less impact than in cities like Shanghai, Dobell said.
For the July-September quarter, the company posted better-than-expected results helped by higher revenue from its online business China Online Housing Technology Corp.
The company's subsidiary China Real Estate Information Corp, which included the COHT business, forecast better-than-expected fourth-quarter revenue as it is seeing a rise in its subscribers base. [ID:nASA011YT] Third-quarter revenue at the company rose 3 percent.
Total gross floor area of new properties sold fell 10 percent to 3.0 million square meters, while its total value dropped 12 percent to $3.9 billion.
Shares of the company, which have lost 10 percent of their value in the last month, were up 2 percent at $17.33 on Thursday morning on the New York Stock Exchange. They rose to $17.60 earlier in the session. (Reporting by Divya Sharma in Bangalore; Editing by Don Sebastian)
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