Investors in Evergrande's wealth management products protest for answers on $300 billion losses

From Investing.com: 2024-11-26 20:32:42

Hundreds of Chinese investors affected by the collapse of Evergrande have launched a campaign to press authorities for updates on the failed developer. The investors hope to apply pressure without breaking the law, as frustrations remain over lost investments totaling over $300 billion. The protests come amidst financial strain in China’s slowing economy.

Aggrieved investors in Evergrande’s wealth management products staged protests in late 2021 and early 2022. The recent coordinated effort in Shenzhen marks the first significant protest since 2022, with more than 500 former investors participating in actions at various government offices. The investors aim to express grievances through official channels to avoid backlash from authorities.

Investors, who were lured by high yields and perks, invested almost $14 billion in Evergrande’s wealth management products before the collapse. Shenzhen police had detained some Evergrande Financial Wealth Management Co staff in a probe last year. The pressure from investors for answers coincides with growing social strains and concerns about economic grievances leading to instability.

China’s government views social stability as vital for economic prosperity, particularly in the face of recent mass-casualty attacks. Authorities have urged increased scrutiny of financial disputes, including those related to property and wages. Analysts anticipate potential economic stimulus to address growing discontent as protests related to economic issues rise in number.

A dissent monitor reported a record number of protests driven by economic reasons in the third quarter, highlighting issues like unpaid wages and undelivered properties due to developer failures. Analysts point to a social dynamics indicator showing policy shifts in response to social issues, including recent measures to support the property sector. Concerns remain about potential economic impact from future trade tensions.



Read more at Investing.com: Exclusive-In careful protest, China Evergrande’s investors press for action By Reuters