Billionaire investor Mark Mobius told Fox Business that he cannot withdraw money from the country because of China’s capital restrictions. He has advised investors to be cautious about investing in the economy (China) under the strictness of the government.
“I have an HSBC account in Shanghai,” Mobius, founder of Mobius Capital Partners, told Fox Business in an interview published on March 2. I can’t get my money out of it. The government is taking strict action on capital flow outside the country.
Moebius’ statements were circulated over the weekend on China’s social media site WeChat. He said, ‘I don’t know why this is happening. They are imposing all kinds of restrictions. They are not saying that you cannot withdraw your money. But they say give us all the records of 20 years that how you earned this. This is foolishness.
Mobius managed emerging market investments at Franklin Templeton Investments for three decades and is known for his bullish outlook on China. However, he now says that he will be very cautious about investing in China. Referring to the former Chinese leader, he said, ‘It means that China is going in a completely different direction than its former leader Deng Xiaoping. Xiaoping had started a major reform program.
He said, ‘Now you have a government that is taking part in companies all over China. This means that it is trying to take control of these companies. So I don’t think it would be a good sign at a time when a government is exerting more control over the economy.
Mobius told Fox Business that it is increasing its investments in alternative markets such as India and Brazil. Mobius and HSBC could not be reached for a comment.
