Investment guru Mark Mobius has recently revealed that he has been experiencing difficulty in retrieving his investments from China, citing the country’s strict capital controls. He warns potential investors to exercise extreme caution when considering investment opportunities within an economy subject to such tight government regulations. Mobius, renowned for his optimistic outlook on China’s economic potential, expressed his dismay at the current situation during an interview published by FOX Business on March 2.
Mobius, the founder of Mobius Capital Partners, maintains an account with HSBC in Shanghai but has been unable to withdraw his funds due to the Chinese government’s restrictions on capital outflows. He claims that the authorities have imposed numerous hurdles and requested extensive records of his financial transactions over the past two decades, without explaining their actions. These measures, he believes, are absurd and inexplicable.
Mobius’ remarks have been making waves on the Chinese social media platform WeChat, with many users expressing their concerns about the country’s increasingly stringent regulations.
Having headed up emerging market investments at Franklin Templeton Investments for thirty years, Mobius is a renowned figure in the field. However, he now warns potential investors to be wary of the risks associated with investing in China, stating that the government’s current policies are far from the reforms implemented by former Chinese leader Deng Xiaoping. Mobius highlights the government’s increased intervention in the market, with the authorities taking golden shares in numerous companies across the country, as evidence of their increasingly tight control over the economy.
Despite his reservations about China, Mobius remains optimistic about alternative markets, citing India and Brazil as promising investment opportunities. It remains unclear whether he has successfully retrieved his investments from China, and neither he nor HSBC has been available for comment.