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But I pointed out that Amazon has been aggressive in its response, in ways reminiscent of Microsoft’s approach, and I wondered if that was wise.

But it remains to be seen whether Amazon will disrupt yet another industry. Retail experts from Oliver Wyman wrote in?The Harvard Business Review?that “retail is littered with promising technologies introduced with great fanfare that didn’t become mainstream because they didn’t sufficiently benefit either the retailer or the customer.”

But Zheng still thinks the industry is intrinsically healthy and sustainable. Over the past few years, tourism and hotel industries have become more diversified and Chinese consumers have also become more sophisticated. A growing number of people show preference for "nonstandard products" such as homestays or lodging services, which are more economical, practical and nimble, he said.

But FF said that development has no impact on the startup's daily operations, as LeEco and FF have been two separate companies since the latter was founded in 2014.

But officials and analysts said that strength in the property sector may moderate in the coming months, as rounds of stringent cooling measures by the government to rein in surging housing prices will gradually take effect.