On December 12, 2024, the most famous night market in Sanya, Hainan Province, “Yiheng Theme Night Market,” has been taken over by Hunan Shengshu Cultural Communication Co., Ltd. (referred to as Shengshu Company), raising rents and conducting clearances against old merchants. Unable to bear the situation, hundreds of merchants have been on strike for three consecutive days starting from December 8, demanding to continue operating until the end of the Chinese New Year.
On December 8, approximately two to three hundred merchants gathered in front of Yiheng Night Market, with dozens of police officers present. According to a merchant named Li Yan, the rights protection activities yielded no results; a merchant attempting to display a banner was taken away by the police before it could be unfurled.
Over the next two days, merchants continued their rights protection efforts, with some even going to the municipal government. On the evening of December 9, a conflict broke out between the merchants at Tongyuanji’s fried meat stall in the night market trying to move their kitchen equipment and Shengshu Company.
Merchant Liu Jian stated that the sole demand of the merchants at present is to allow old merchants to continue operating until March next year, enabling them to make up for the losses incurred during the peak season of these months.
Sanya is a unique city where business is slow during the off-season, with the peak season being from December to March of the following year during the Lunar New Year period when visitors from all over the country come, creating business opportunities. Therefore, many merchants have requested the government, and even collectively written letters requesting to be allowed to operate until the end of March next year.
Liu Jian revealed that since the lockdown due to the pandemic three years ago, business at the night market has been on a decline. This year’s economic situation is particularly poor, with operating income only half of last year’s, and some were even operating at a loss until last month. Despite being bustling with activity, the conversion rate from visitors taking photos to making purchases is low.
Upon the entry of Shengshu Company, not only did rent surge two to three times, but merchants were also required to pay 15 months of rent and deposit, along with an entrance fee. This was difficult for the old merchants who were used to paying only a few hundred yuan in rent. Therefore, the merchants are only requesting to continue operating until March next year before vacating.
According to Liu Jian, Yiheng Night Market was formerly a furniture and building materials market. In 2018, the owner of the building materials market, Zheng Yahua, established a commercial complex integrating branded bars and specialty dining.
In early 2021, the EGO bar invested by the celebrity Li Chen also set up within the market. After the pandemic was lifted, Yiheng Night Market became a popular destination among netizens, with a continuous flow of visitors.
It is reported that the night market consists of over 60 food stores, more than 300 market stalls, hundreds of varieties of snacks from various regions, nearly 30 types of tropical fruits, and more than three thousand merchants.
As the reputation of Yiheng Night Market spread far and wide, it attracted eager investors, leading to a situation where the transfer fees for store-fronts rose to 100,000 yuan, and even several hundred thousand yuan, creating a scarcity in available store spaces.
However, by 2023, Li Chen’s EGO bar suddenly closed down, and other businesses such as Guangbaina Supermarket and Wanyou Yinfok Play City also left, resulting in a decrease in market traffic.
At the same time, Yiheng and the property company Rongtong entered into a lease contract dispute that went into legal proceedings. In mid-2023, after an open bidding process, the management and operation of the Yiheng site was subcontracted to the new company Shengshu. After winning the bid, Shengshu Company was required to pay over 30 million yuan in rent annually, which is 20 times more than what Yiheng paid to Rongtong Company under the previous contract.
Liu Jian stated that it was said that the bid won by Shengshu Company involved shady dealings, and after taking over, Shengshu Company shifted the immense rental burden onto the Yiheng merchants.
He further disclosed that upon Shengshu Company’s takeover, they initially cited facility maintenance as a reason to shut down all operations and conduct clearances against the merchants. In January of this year, they employed over a hundred social personnel to carry out a violent clearance operation, but were ultimately prevented from doing so by the court and the government.
Liu Jian stated that Shengshu’s intention is to clear out all merchants, conduct a major reshuffle, and then gradually invite them back one by one after the Chinese New Year so that they can lease out at higher prices.
After losing the first instance of the lawsuit against Rongtong and appealing, the second-instance court delivered a final verdict in just three working days. Subsequently, Yiheng issued a notice requiring businesses to vacate before October. However, due to the provincial high court accepting Yiheng’s application for re-trial, until the final judgement is made, old Yiheng merchants can continue operating until after the Chinese New Year.
Unexpectedly, on December 7th, Yiheng was forcibly executed by the court, and the management and operation department suddenly withdrew, triggering the above-mentioned rights protection actions that began on December 8th.
Epoch Times contacted Rongtong Company and the Sanya Municipal Government, but failed to reach relevant personnel.