China has become notorious in the financial scene for its government’s intense grip on its economic dealings. While the Chinese market has the potential for immense profitability, Beijing maintains strict control over where the sector’s money is coming and going. Some prominent investors from other countries have begun to find themselves on the pointy end of Beijing’s proverbial stick.
Last week, Mark Mobius, prominent investor and founder of Mobius Capital Partners, divulged to Fox Business that he has been unable to pull his investments out of China. “I have an account with HSBC in Shanghai. I can’t take my money out. The government is restricting flow of money out of the country,” he said.
“I can’t get an explanation of why they’re doing this … They’re putting all kinds of barriers. They don’t say: No, you can’t get your money out. But they say: give us all the records from 20 years of how you made this money … This is crazy.”
Despite previously being very gung-ho on Chinese investments, Mobius offered a word of caution to any potential investors about the sector. “The bottom line is that China is moving in a completely different direction than what Deng Xiaoping instituted when they started the big reform program,” he said.
Mark Mobius has said he cannot take his money out of China due to the country’s capital controlshttps://t.co/9gHBFXscBq
— CNN International (@cnni) March 6, 2023
“Now you have a government which is taking golden shares in companies all over China. That means they’re going to try to control all of these companies … So I don’t think it’s a very good picture when you see the government becoming more and more control-oriented in the economy.”
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