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WeChat blocks China Evergrande messaging groups, some users say By Reuters

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© Reuters. FILEPHOTO: A group of people are seen standing in front Tencent’s headquarters in Shenzhen (Guangdong Province, China), August 7, 2020. REUTERS/David Kirton

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By David Kirton

ZHUHAI, China (Reuters) – Tencent Holdings (OTC:)’ WeChat platform has blocked at least eight instant messaging groups used by people in China owed money by cash-strapped property giant China Evergrande Group, group members said on Wednesday.

These groups were made up of between 200 and 500 members. They discussed member claims and organized protests. The members claimed that they were prevented by the group from starting Tuesday morning to send them new messages.

Evergrande is in a crisis. It has a debt load of less than $305 billion and is in cash crunch. Analysts say the government wants to enforce financial discipline. However, it is also wary about an uncontrolled collapse that might fuel protests by homebuyers and local investors.

Protests were launched by angry investors and homebuyers in several locations in the last week. They also took to WeChat, one of the most widely used messaging apps in China, to vent their frustrations.

Reuters reported earlier in the month that protesters were taken out of Evergrande headquarters, Shenzhen. WeChat users shared similar stories.

Two WeChat users saw the message that “limits were placed on this group due to its violation of relevant rules and regulations” Wednesday. Reuters obtained a separate screenshot that confirmed the wording.

Three users also claimed the groups were deleted from WeChat. Two other users claimed they couldn’t access their groups. Tencent did not respond to a request for comment. China’s Cyberspace Administration of China didn’t immediately reply to our request for comment.

Two former members of certain of the groups stated separately that Chinese law enforcement visited them on Sunday. They asked for papers in which they pledged not to be part of any illegal activities or join any gatherings. Due to the sensitive nature of the issue, they declined to identify themselves.

China’s Ministry of Public Security didn’t immediately reply to our request for comment.

Evergrande’s troubles, including missing payments on global bonds coupons last week, rattle global markets. However, they received little coverage from Chinese media and Beijing has not spoken publicly.

Chinese social media sites are subject to stringent laws that require them to censor material that is “undermined social stability” and critical of the central state. This has been a tightening process under President Xi Jinping.

Evergrande’s posts were blocked by other Chinese social media sites, it was not clear. You can see videos on Weibo, a Twitter-like platform (NASDAQ:), of Evergrande staff confronting unsatisfied creditors as well as complaints against the property developer.

WeChat users expressed concern that Evergrande-related WeChat channels had been shut down.

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