The capital controls in China prevent billionaire investor Mark Mobius from leaving the country with his money, and he advised investors to be “very, very careful” when making investments in a country where the government is tightly controlling the economy.
“In Shanghai, HSBC is where I hold an account. I am unable to access my money. The government is preventing money from leaving the nation “In an interview with FOX Business that was released on March 2, Mobius, the founder of Mobius Capital Partners, stated.
“Why they’re doing this is not being explained to me. All kinds of obstacles are being placed. You cannot withdraw your money, they don’t say. Yet, they demand that you turn over all of your financial documents dating back twenty years so that we can examine them. Crazy, this.” On Chinese social media platform WeChat over the weekend, Mobius’ remarks were shared.
For thirty years, Mobius oversaw the firm’s investment in emerging markets and was known for having a positive outlook on China. He did, however, add that he “would be very, very careful” when making investments in the nation today.
The reality is that China is drifting far away from the policies Deng Xiaoping set forth when the country’s extensive reform programme was launched. He said, making reference to the former Chinese president.
“Presently, the Chinese government is acquiring golden shares in businesses across the country. That indicates that they will attempt to exert influence over each of these businesses. So, when I see the government getting more and more focused on economic control, I don’t think it’s a very positive picture.”
Mobius, who describes himself as “the Indiana Jones of Emerging Market Investing,” told FOX Business that he is expanding his exposure to alternative areas like Brazil and India.