For the past two months, hundreds of people have been gathering at the 43-floor Zhuoyue Houhai Centre in Shenzhen, where China Evergrande Group’s headquarters occupy 20 floors. They held banners demanding repayment of overdue loans and financial products. Police with riot shields had to be on site to keep things under control.
The demonstrators are construction workers at the property developer’s housing projects, suppliers providing construction materials and investors in the company’s wealth management products (WMPs). From paint suppliers to decoration and construction companies, Evergrande owes more than 800 billion yuan ($170 billion) due within one year, while it has only a 10th of that amount of cash on hand.