Billionaire investor Mark Mobius warned investors on FOX Business to be exceedingly cautious regarding investments in China. He highlighted this point by referencing his experience of having money stuck in China, as he cannot take out the funds due to the country’s capital controls. “I have an account with HSBC in Shanghai,” shared Mobius. “The government is restricting the flow of money out of the country.” It appears that tight regulations don’t just apply within a nation but rather extend beyond its borders too!
Famous Investor Mark Mobius Warns People About Investing in China
On the social media site WeChat this past weekend, Mobius expressed his confusion and outrage. He stated that they are putting up numerous barriers blocking him from accessing his money with demands of documentation going back twenty years – even though the institution has not explicitly denied him access to it. Given their current practices, the renowned Franklin Templeton Investments veteran declared he would be very wary about investing in China any further.
In conclusion, Deng Xiaoping’s ambitious reform program that propelled China forward is no longer prominent. Instead, the government owns controlling stakes in companies throughout the country and seeks to exert more power over them. Undoubtedly, this trajectory does not bode well for a prosperous economic future of the nation.
Nicknamed “the Indiana Jones of Emerging Market investing,” Mobius recently informed FOX Business that he is increasing his investments in alternative markets such as India and Brazil. Neither Mobius nor HSBC was available for comment over the weekend.
Mobius Proposes the Idea Of Switching To Other Markets Instead Of China
As Mark Mobius examined other potential investment prospects, he pointed to India. “A billion people reside there,” he noted, “capable of performing the same tasks as those in China– from manufacturing and beyond.” Manufacturers are considering moving production away from China due to intensifying tensions between Beijing and Washington. Before the weekend’s end, Apple supplier Foxconn had agreed to invest $700 million into a new plant located in Karnataka which is based out of India.
