China’s financial landscape is known for its government’s tight control over economic activities. Despite offering lucrative opportunities, Beijing exercises strict oversight on the flow of money within the Chinese market. This control is now affecting some foreign investors, creating hurdles for them.
Recently, Mark Mobius, a well-known investor and founder of Mobius Capital Partners, revealed to Fox Business his struggle in pulling out his investments from China. He expressed frustration stating, “I have an account with HSBC in Shanghai. I can’t take my money out. The government is restricting the flow of money out of the country.”
Mobius elaborated on the challenges he faced, mentioning, “I can’t get an explanation of why they’re doing this. They’re putting all kinds of barriers. They don’t explicitly say ‘No’ to withdrawing money, but they require records of 20 years showing how you made that money. This is mind-boggling.”
Despite his previous optimism about Chinese investments, Mobius now cautions potential investors about the evolving situation in the sector. He remarked, “The bottom line is that China is moving in a completely different direction than what Deng Xiaoping set in motion with the reform program.”
In a tweet by CNN International, Mobius’s predicament was highlighted, emphasizing the challenges posed by China’s capital controls.
Expressing concerns over China’s increasing control over businesses, Mobius warned, “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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