New Delhi, March 6 (IANS) Mark Mobius, who allocates capital all over the world, has raised a red flag about doing business – or trying to bow out of your business – with China, media reports said.
“I’m personally affected because I have an account with HSBC in Shanghai. I can’t get my money out. The government is restricting the flow of money out of the country,” Mobius told Fox Business.
“So I would be very, very careful investing in China.” The Mobius Capital Partners founder noted that China’s bottom line is moving “in a completely different direction” than its former open-minded-market revolutionary leader Deng Xiaoping.
“Now you have a government which is taking gold in shares in companies all over China. That means they’re going to try to control all these companies,” Mobius explained, Fox Business reported. “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.”
China has made a “very significant” effort to allegedly prevent Mobius from removing capital from Chinese-based stocks.
“I can’t get an explanation of why they’re doing this. It’s just amazing. They’re putting all kinds of barriers,” the investor said, Fox Business reported. “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’ve made this money,’ and so forth. It’s crazy.”
–IANS
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