China Evergrande investors press for action in cautious protest

The real estate crisis that began in 2021 has squeezed the finances of local governments, landlords and businesses dependent on a sector that once accounted for a quarter of China’s economic activity.

Aggrieved investors in now-worthless “asset management” products issued by Evergrande staged protests outside the developer’s offices in late 2021 and early 2022 after missing payments to contractors and creditors.

The organized effort by Evergrande investors in Shenzhen last week marked the first major protests since 2022.

They organized to follow official channels to express their grievances to avoid antagonizing authorities, people with knowledge of the campaign told Reuters.

More than 500 former Evergrande investors attended three separate protests in Shenzhen, according to people who attended.

On Monday, November 25, a group visited an investigation office in the area where Evergrande is headquartered. On Tuesday, another group lined up outside the city’s economic crimes bureau. On Wednesday, a third group went to city court.

The goal is for investors to reach out to the front offices of government offices one by one in a way that does not resemble a public protest or invite police repression, the people involved said.

Reuters was unable to confirm the total number of people involved. A Reuters reporter saw dozens of people outside the investigation office on Monday, and dozens more gathered near the court on Wednesday.

Sources said the planned timing and meeting place for the action were shared only among a group of investors that day. Evergrande investors have kept in touch with each other in small WeChat groups for the past two years.

“We must stay out of sight and talk one on one, otherwise we will be shut down,” one attendee told Reuters.

Evergrande, which oversees investigative offices visited by investors, Shenzhen police and the city court did not immediately respond to requests for comment.