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How China apartment rental giant Danke saw its business crumble

Highly leveraged expansion leaves debts unpaid and tenants demanding justice

The collapse of Danke's controversial business model has sent shockwaves through China's massive rental market.   © Reuters

The financial turmoil that crippled Danke Apartment, one of China's largest online apartment rental platforms, spilled into streets across China in recent weeks as angry tenants clashed with landlords.

Now employees are threatening to sue Danke, whose name means "eggshell" in Chinese, over unpaid wages. Danke faces disputes over 3.4 billion yuan ($520 million) of unpaid debts, including 1.6 billion yuan of loans from Tencent-backed WeBank, 1.2 billion yuan owed landlords and renters, and 600 million yuan due contractors, Caixin learned.

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