In an unprecedented grassroots effort, hundreds of Chinese investors have mobilized this month to demand answers from authorities regarding the collapse of Evergrande, the embattled property giant that succumbed under more than $300 billion in liabilities. This coordinated campaign marks the most significant public action by investors since 2022, shedding light on the persistent frustrations of middle-class Chinese citizens who lost life savings in the debacle.
The campaign unfolded in Shenzhen, where small groups of investors sequentially visited three key government offices. They sought updates on an official investigation launched over a year ago into Evergrande’s financial mismanagement. Participants avoided overt public protest, fearing reprisal under China’s strict security apparatus, and instead framed their visits as lawful expressions of grievance.
“We need to stay low profile and talk one-on-one, otherwise we’ll be shut down,” one investor explained. Despite the caution, the effort involved over 500 participants across three days, demonstrating the determination of those affected. The well-planned approach included limited sharing of meeting locations and times, communicated discreetly via small WeChat groups on the day of action.
A Reuters reporter observed dozens of individuals congregating outside an investigation bureau on Monday, with similar turnouts near a city court and the economic crimes bureau later in the week. While these numbers are modest compared to earlier protests, the campaign’s organization signals a new phase in investor activism.
Evergrande’s collapse represents one of the largest financial crises in China’s history. Lured by annual returns of up to 12% and perks like luxury goods, over 80,000 people—including company employees—invested in the company’s wealth management products, which collectively raised $14 billion. However, as the real estate giant defaulted on payments in late 2021, its web of creditors, contractors, and investors was left grappling with massive losses.
In September 2022, Shenzhen police detained staff from Evergrande Financial Wealth Management Co., the group’s investment arm, amid allegations of financial misconduct. Yet, more than a year later, little progress in the investigation has been disclosed, leaving investors feeling abandoned.
“If we don’t speak out now, there will never be a chance,” lamented one of the participants in the recent Shenzhen campaign.
The Evergrande crisis is symptomatic of a wider real estate downturn that began in 2021, exacerbating financial strains on homeowners, businesses, and local governments. Once accounting for nearly a quarter of China’s GDP, the property sector has become a significant drag on economic activity, with cascading effects on social stability.
China’s government has been vigilant about the potential for economic grievances to spark unrest. This month alone, several violent incidents attributed to economic frustrations have heightened official concerns. In one such case, police reported that the perpetrator targeted bystanders over financial grievances.
The Communist Party, which prioritizes social stability as a cornerstone of national prosperity, has intensified efforts to monitor and address financial disputes. Top security official Chen Wenqing recently urged party committees to bolster security measures in anticipation of further unrest.
Chinese authorities have relied on advanced surveillance technology to quickly disperse gatherings and suppress dissent online. Discussions about sensitive issues, such as mass-casualty incidents and Evergrande’s collapse, are often censored. Despite these measures, officials occasionally adjust policies in response to public discontent.
For example, Beijing’s abrupt reversal of COVID-19 restrictions in early 2023 followed a wave of protests. Similarly, bank depositors affected by fraud scandals received compensation after demonstrating against financial institutions. Analysts believe that growing public discontent could compel the government to roll out additional economic stimulus to placate households and stave off further unrest.
According to the China Dissent Monitor, a project by the U.S.-based rights group Freedom House, the third quarter of 2024 saw 826 protests triggered by economic grievances—the highest quarterly figure on record. These protests, driven by issues like unpaid wages and unfulfilled property developments, reflect mounting pressures on ordinary citizens.
Morgan Stanley analysts have developed a “social dynamics indicator” to measure social unrest. They attribute the indicator’s plunge to a seven-year low as a key factor behind Beijing’s recent monetary stimulus and property sector reforms. However, they warn of potential renewed unrest in 2025, coinciding with the anticipated return of U.S. President Donald Trump, whose trade policies could exacerbate economic challenges for China.
While the Shenzhen campaign underscores investor frustrations, it is unlikely to influence the court-ordered liquidation of Evergrande. The developer’s liabilities, exceeding $300 billion, involve a complex web of creditors unlikely to prioritize individual investors. Analysts suggest that Beijing’s focus will remain on systemic risks rather than addressing the grievances of smaller stakeholders.
However, the campaign highlights a growing willingness among China’s middle class to seek accountability, even within the confines of an authoritarian system. For those who lost their savings, the coordinated action represents a fight for transparency and justice in an environment where dissent is fraught with risk.
The Evergrande saga has become a litmus test for the Chinese government’s ability to balance economic challenges with public sentiment. As Beijing grapples with a slowing economy and rising social pressures, its handling of crises like Evergrande will shape domestic confidence in the Communist Party’s governance.
In the meantime, the investors’ cautious yet determined approach in Shenzhen serves as a poignant reminder of the deep-seated frustrations simmering beneath the surface of China’s economic miracle. Whether their voices lead to meaningful change remains uncertain, but their actions mark a significant moment in the evolving relationship between the Chinese public and the state.
