The Billionaire Investor Mark Mobius said to FoxBusiness that you can’t get your money out of China due to country capital controlsand He warned investors to be “very, very careful” when investing in an economy under tight government control.
“I have an account at HSBC in Shanghai. I can’t get my money out. The Government is restricting the flow of money out of the country”, said Mobius, founder of Mobius Capital Partners, to FoxBusiness in an interview published on March 2.
“I can’t get them to explain to me why they are doing this and they are putting up 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.’ It’s crazy,” she added.
The Mobius comments circulated on the Chinese social network WeChat over the weekend.
Mobius led Franklin Templeton Investments’ emerging markets investments for three decades and he was known for his bullish view on China. Now, however, he said, “I would be very, very careful” when investing in the country.
“The conclusion is that China is moving in a completely different direction than the one Deng Xiaoping instituted when he launched the great reform program.”he said, referring to the former Chinese leader.
“Now you have a government that is taking gold shares in companies all over China. That means They are going to try to control all those companies (…) So I don’t think it’s a very good image when you see that the government is increasingly oriented towards controlling the economy”.
Mobius, who calls himself “the Indiana Jones of emerging market investing,” told FoxBusiness which is increasing its exposure to alternative markets such as India and Brazil.
China announced on Sunday that its military budget will increase 7.2% in 2023, according to a report that will review in the coming days the National People’s Assemblywhich began its annual session this Sunday.
The Asian giant plans to spend 1.5 trillion yuan (225,000 million dollars) for his defense. “The increase in defense spending is necessary to respond to complex security challenges. It is also necessary (for China) to fulfill its obligations” as a great power, he said. Wang Chaospokesperson for the National People’s Assembly.
Premier Li asked in his speech to lawmakers on Sunday “intensify” army training as well as “the combat readiness” and “innovate in terms of strategic orientations”.
Beijing has set itself an economic growth target of “about a 5 %”for this year, according to the government action report read this Sunday by the outgoing prime minister, li keqiangduring the inauguration of the annual session of parliament.
With information from Reuters
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