Chao Chi, Taiwan's leading sublease and property management operator, has been embroiled in a dispute over its finances and alleged illegal fundraising, leaving more than 400 affected families with no avenue for compensation — bad news for landlords, tenants and the credibility of the government's social housing policy.

• Hua Ching-chun, chairman of the National Housing and Urban Regeneration Center, said he is willing to apologise if he bears responsibility, and pledged to help most of the affected landlords switch to other operators within two weeks.
• The affected families said they only dared to put money in because they saw that Chao Chi had investment from the National Development Fund and had been given awards endorsed by government officials. They now suspect their personal data was transferred to affiliated companies and used to lure them into investing through corporate bonds.
• The self-help group is calling on the government to set up a dedicated oversight committee, thoroughly investigate the flow of funds, and establish an exit mechanism that protects both creditors and tenants.
• Hua Ching-chun clarified that he knew the heads of the companies involved only as acquaintances from his work promoting the sublease and property management programme, and that he learned of the corporate bond problems only at a very late stage.
• Unlisted companies may issue bonds first and file a report only 15 days afterwards, which amounts to almost no prior scrutiny. The Ministry of Economic Affairs has launched a review, aiming to complete it within a week.

Outlook: The National Housing and Urban Regeneration Center is transferring 6,688 units to other operators and expects the matter to be wrapped up in a little over a month, with the review of possible amendments to the corporate bond filing rules the next thing to watch.