The financial chain crisis of Danke Apartments may unleash nationwide protests in China, experts warned after the country’s leading online rental platform held onto tenants’ rents meant for property owners.

Danke Apartments, known in Chinese as Eggshell Apartments, was listed in New York this January. Over the last few days, dozens of landlords and tenants were seen protesting outside the Beijing headquarters of the cash-strapped company. Some tenants were evicted from their homes after their rents did not get through to the landlords.

It raised questions about the new internet business model, which focuses primarily on attracting capital to fund rapid expansion plans.

China was determined to stimulate their economy but lacked proper regulations, said veteran political commentator Johnny Lau.

Lau noted that the authorities failed to take careful considerations while planning economy-boosting policies and stepped in to maintain “stability” only after chaos erupted. None of the policy makers would be held accountable for a faulty policy, he said, adding that many of the “innovative” corporations were founded by tycoons and state-owned enterprises.

Kevin Tsui, associate professor of economics at Clemson University, also suggested the government to update its regulatory policies to minimize the political risks sparked by corporate fiascos.

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