china imo don’t need foreign capital at these stage of economic development, it learned how to print money and its credit is decent. what they lack is a sense of mission, what they want to achieve and what is the end game? they can’t have a cake and eat it too. money is the least important.
The CCP will never let go of capital controls. South Koreans also claimed they were going to open their markets to foreigners and then came the GFC and reversed that decision immediately. It is a cultural issue with Asians, at least that is my understanding having gone to school & work amongst them. I mean just recently South Korea yanked the rug again with their short selling ban. These countries aren't serious about global money flowing to their countries. They want money flow without any consequences.
Well to be fair, Asian countries are not the only ones that have capital control. Spain has it as well and is quite strict too I heard. I find it's the countries that do not have as efficient of capital markets that tend to have the most capital control because they can't raise enough capital from the capital market that keeps the economy liquid enough so the only way that they can get their hands on money is to restrict the outflow of money by their citizens or whoever happen to put their money in the country. Look at it, the countries that have capital controls that we know of are China, South Korea, Spain and is it any coincidence that all of these countries forbid short trading either outright or with strict rules? Selling is just the flip side of buying and yet they forbid it. How are you going to have a liquid market when all you can do is buy but not sell? LOL And then you get into a chicken-and-egg situation. Because the market is not liquid enough for you to raise capital, then you impose capital controls to prevent the capital from going out but the more you restrict capital outflow, the less willing people are going to put their money into your market so the less money you will be able to raise in the market and you have to impose more capital controls and etc. and the vicious cycle just continues. And Russia used to forbid short trading as well until it sees that it was killing the market liquidity and it's now allowing it.
you made point here. just in the news " South Korean prosecutors have indicted BNP Paribas SA for allegedly violating short-selling rules, according to people with direct knowledge of the matter, the latest development in the country’s crackdown on such trades. The French bank was charged last week with violating local capital markets law, according to the people, who requested anonymity discussing a private matter. The Seoul Southern District Prosecutors’ Office earlier this month indicted a global investment bank and a global hedge fund for conducting illegal short selling, without naming them, according to a spokesman at the office. "