Hundreds of Chinese investors who lost their life savings in the collapse of real estate giant China Evergrande have launched a strategic campaign to demand updates from authorities on the ongoing investigation into the company’s failure. This grassroots effort underscores the simmering frustration among China’s middle-class investors, whose financial futures were derailed by the collapse of a property developer once considered too big to fail.
The effort began earlier this month in Shenzhen, where small groups of investors discreetly visited three government offices over successive days. Participants hoped this low-key approach would prompt action without provoking a crackdown. “If we don’t speak out now, there will never be a chance,” said one participant, speaking anonymously due to fear of reprisal from Chinese authorities.
China Evergrande, once the world’s most indebted property developer, fell under the weight of more than $300 billion in liabilities. Its implosion in 2021 sent shockwaves through the real estate sector, which contributes about a quarter of China’s GDP. The company’s downfall left homeowners, contractors, and investors scrambling to recover losses.
Among the hardest hit were investors in Evergrande’s “wealth management” products, which promised lucrative 12% annual yields along with perks like Gucci bags. Over 80,000 people poured nearly $14 billion into these products, many of which are now worthless.
Early protests by these investors in 2021 and 2022 outside Evergrande’s offices were met with swift police intervention. While those demonstrations faded under pressure, this month’s effort marks the first significant resurgence of collective action since then.
Between Monday and Wednesday, groups of investors visited three key government offices in Shenzhen: an investigation bureau, the city’s economic crimes bureau, and a local court. Organizers deliberately adopted a low-profile approach, with participants entering the offices one by one to inquire about the progress of the investigation into Evergrande.
This strategy reflects a growing awareness of the risks of public dissent in China, where mass surveillance and strict controls on public gatherings quickly quash visible protests. Participants shared meeting locations only on the day of the action, using small, private WeChat groups to coordinate.
“We need to stay low profile and talk one-on-one; otherwise, we’ll be shut down,” said one participant.
The investors’ patience is running thin as more than a year has passed since Shenzhen police announced the detention of staff from Evergrande’s financial management division. Despite this, no significant updates have been shared about the investigation or the potential recovery of lost funds.
Evergrande itself, the Shenzhen police, and the local court have remained silent in response to inquiries about the protests or the state of the investigation.
For those affected, the stakes are high. Many middle-class families invested their life savings in Evergrande’s products, lured by the promise of steady returns. “These weren’t just investments for us,” said a participant. “This was our future.”
The Evergrande collapse is emblematic of the larger crisis in China’s real estate sector, which began its downturn in 2021. The industry’s struggles have squeezed local governments, developers, and homeowners alike. Delayed construction projects and undelivered properties have sparked anger among homebuyers, while unpaid wages have fueled broader worker discontent.
Analysts estimate that the fallout from the real estate sector’s troubles will continue to ripple through the economy for years to come. In the third quarter of this year alone, the U.S.-based Freedom House reported a record 826 protests triggered by economic grievances in China, a 31% increase from the previous year.
China’s government views social stability as paramount, particularly as the economy grapples with slower growth. Authorities have heightened scrutiny of financial disputes, including those tied to the property sector, amid mounting social strain.
A string of violent incidents linked to economic grievances has further intensified official concern. In separate attacks this month, perpetrators targeted bystanders, citing economic frustration as a motive. These incidents have prompted renewed calls from China’s top security officials for stricter social controls.
Yet Beijing has shown a willingness to respond to grievances under pressure. In early 2023, the government abruptly lifted strict COVID-19 curbs following widespread protests. Similarly, it offered compensation to defrauded bank depositors after public outcry over a major fraud scandal in 2022.
Economic analysts believe Beijing may turn to stimulus measures to ease mounting social tensions. Already, authorities have rolled out initiatives to support the property sector, provide liquidity to local governments, and boost household finances.
Morgan Stanley analysts have developed a “social dynamics indicator” to track the risk of unrest. According to their analysis, the indicator plunged to seven-year lows this year, prompting the policy pivots seen in late September. While these measures may stabilize the situation in the short term, analysts warn of further declines next year, particularly if geopolitical tensions such as U.S.-China trade disputes intensify.
For Evergrande’s investors, the road to recovery remains uncertain. While their recent actions have drawn attention to their plight, it is unclear whether authorities will provide meaningful answers or restitution.
The case also highlights broader questions about accountability and governance in China’s corporate sector. Critics argue that Evergrande’s rapid expansion was fueled by reckless borrowing and lax regulatory oversight, leaving ordinary investors to bear the brunt of its collapse.
The coordinated campaign in Shenzhen reflects a growing determination among Chinese citizens to seek justice, even in a tightly controlled political environment. As one investor put it, “We are not asking for miracles; we just want fairness.”
