I went to Nanning to find the pyramid schemes that lured Singaporeans

(Edited and refined by Grace Chong, with the assistance of AI translation.)

Fifty-two Singaporeans suspected of involvement in pyramid scheme activities were arrested in Guangxi in an incident believed to involve the largest number of Singaporeans arrested overseas in a single case to date. The case, announced last week, has drawn widespread attention. On 6 September, I visited two residential compounds in Nanning’s Wuxiang New District.

Both compounds had previously housed Singaporeans visiting Nanning on “free trips”. They are near Qingshan Bridge, a white, double-tower cable-stayed bridge spanning the Yong River.

I began by asking property agents whether foreigners could buy homes. Two agents from different companies almost immediately asked: “Are you Singaporean?”

One agent said that quite a number of Singaporeans rented homes in the area before the Covid-19 pandemic. On one occasion, the agent rented out ten units to a group of Singaporeans, with the shortest tenancy lasting about three months.

Another agent said the compound had also housed quite a few Singaporeans and Malaysians, particularly in recent years. Some rented, while others bought property. Singaporeans tended to look for four-bedroom units with river views, which now cost about 1.2 million to 1.3 million RMB (US$178,803 to US$193,703). They bought through agents rather than directly from developers. At times, several people would rent a unit together. “Sometimes we’d see a whole group of them carrying suitcases,” the agent said.

The agents’ accounts do not prove that pyramid scheme activities took place inside the apartments. But they do at least indirectly suggest that Singaporeans once had a fairly significant presence in the local residential property market.

From a free trip to an investment pitch

An unnamed woman who stayed at one of the compounds in 2019 said she and her husband had initially intended simply to accept free accommodation offered by a friend. They did not expect the trip to become complicated.

On their first night, the friend arranged a dinner where a group of unfamiliar Singaporeans appeared. Some were said to be doing business locally, while others had bought property there.

From the second day, the so-called “free trip” gradually turned into presentations on property and investment. National development narratives, including the Belt and Road Initiative, were presented as the basis for the investments.

By the third day, the supposed investment was no longer simply about buying property. Participants first had to join a “project” and then recruit others, creating a chain of financial returns between recruiters and those they recruited further down the line.

When she decided not to invest, her friend became cold towards her. She was also told that local officials would attend the activities on the final day.

A city where the schemes are harder to see

Even after entering the compounds, it was difficult to spot anything unusual. Residents came and went as normal. I spent several hours at the two compounds and in the surrounding area but did not hear any obvious Singaporean accents.

An employee at a nearby food outlet also said there had been fewer Singaporeans recently.

The shops and restaurants in the compounds mainly served southern Chinese food, with little emphasis on Singaporean or Malaysian flavours. A clubhouse that appeared to be trying to establish links with ASEAN countries was not open when I visited in the afternoon.

But one ride-hailing driver said that in the past, “dozens of people would live in a single room”, and large groups would come out to spend money at night. When drivers overheard their conversations, “we knew they were involved in pyramid schemes”.

Another person said that around 2018, as enforcement intensified, traditional pyramid schemes that relied on people gathering in groups gradually declined. That year, the former State Administration for Industry and Commerce listed Nanning as one of 11 cities nationwide targeted for focused efforts to combat pyramid schemes.

Several drivers said participants in the past mostly came from outside the area, including northeastern China, Sichuan, Hunan and Hubei. The reason, they said, was simple: people arriving in an unfamiliar city were easier to draw into a scheme, while locals were more likely to see through the scam.

One driver said people from Guangxi would not dare to deceive their own fellow villagers. “If you recruit people and harm others, there are thousands of people in a village. Once they find out, they’ll wipe you out.”

Yet none of the drivers had heard of foreigners becoming involved in pyramid schemes in Nanning.

When the city itself becomes part of the pitch

Pyramid schemes do not necessarily need an obvious “den”. They can instead draw on the city’s own identity and positioning.

Guangxi is China’s frontier for engagement with ASEAN, while Nanning hosts the China-ASEAN Expo. Real policies and projects involving property, regional development, ASEAN cooperation and the Belt and Road Initiative all provide “material” for pyramid scheme operators to build their sales pitches.

Liu Wentian, president of the Singapore South China Business Association, who has done business in Guangxi for many years, said operators would even use photographs of themselves with political figures, including ministers, to make their pitches more convincing. “They deliberately look for opportunities to take photos with ministers, and then use those photographs,” he said.

Jinhu Square in Nanning was also used years ago by Chinese pyramid scheme operators as material in pitches about “capital operation” and the “1040 Sunshine Project”. They interpreted the city’s buildings, sculptures and even the surrounding scenery as supposed “policy codes”.

When I visited on 6 September, anti-pyramid-scheme publicity boards had been erected near the square.

The annual China-ASEAN Expo is due to take place in less than two weeks. At the Nanning International Convention and Exhibition Center, workers were already preparing the venue.

From the residential compounds beneath Qingshan Bridge to Jinhu Square and the convention centre preparing to host the China-ASEAN Expo, Nanning is simply a city going about its business.

That is precisely what pyramid scheme operators exploit: the city’s real stories, repackaged as “national project” narratives designed to deceive.

When a real city, genuine policies and fabricated “national project” pitches are stitched together, fictional capital operation schemes that create no actual value and rely solely on recruiting more people can be wrapped in a convincing enough shell to lure people in.

This article was first published in Lianhe Zaobao as “广西南宁现场：当城市和政策成为传销话术的“剧本素材””.

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