By Reuters Published Mon March 6, 2023 https://edition.cnn.com/2023/03/06/business/mark-mobius-china-capital-controls/index.html Mark Mobius, founding partner of Mobius Capital Partners, is photographed in Hong Kong in 2018. Justin Chin/Bloomberg/Getty Images Mark Mobius has said he cannot take his money out of China due to the country’s capital controls, cautioning investors to be “very, very careful” about investing in an economy under a tight government grip. “I have an account with HSBC in Shanghai. I can’t take my money out. The government is restricting flow of money out of the country,” Mobius, founder of Mobius Capital Partners, told FOX Business in an interview published on March 2. “I can’t get an explanation of why they’re doing this … They’re putting 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 … This is crazy.” Mobius’ comments were circulated on Chinese social media site WeChat at the weekend. Mobius led emerging market investment at Franklin Templeton Investments for three decades and is known for his bullish view on China. Now, though, he said, he “would be very, very careful” investing in the country. “The bottom line is that China is moving in a completely different direction than what Deng Xiaoping instituted when they started the big reform program,” he said, referring to the former Chinese leader. “Now you have a government which is taking golden shares in companies all over China. That means they’re going to try to control all of these companies … 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.” Mobius, who calls himself “the Indiana Jones of Emerging Market investing,” told FOX Business he’s increasing exposure to alternative markets such as India and Brazil. Mobius and HSBC could not be reached at the weekend.
yea right, i have heard the stories like that. money laundry, tax evasion, etc. Not Indiana Jones time anymore.
Anyway, the craziest story I heard but I can't confirm the fact. Last summer few Chinese landed in Newark Airport with no luggages, with valid US tourist visa of course. But they have digital wallet with 70,000+ Bitcoins. That is an awesome 3.5 billion at the peak.
This has caused me to re-analyze some upcoming ROTH adjustments. Capital controls are not a good thing. And they don't work either! But this sounds more like China is concerned about becoming the next Russia for the Biden administration. They are beating the war drums.
I traded lot of China internet names listed in HK, SZ and SH via Interactive Brokers before Trump's trade war with China. For no particular reason, US persons/entities get hurt financially.
Unless CCP comes up with some weird policies that directly impact the companies in the ADR and ETF (like how they forbade the IPO of DIDI for example), there is no impact. As long as you don't deposit money physically in a financial institution physically located inside the border of China, your money is safe.
George Soros must be screaming "I told you so!!!" so loud into the monitor if he is reading this article. LOL I imagine Blackstone and Goldman Sachs and Elon Musk would be next to discover this little "caveat" in putting money physically in China. I guess none of those people or organizations have done any research or due diligence before putting their money in China. I have read articles that state that China even restricts foreign workers from sending their money home after they earned it in China. I guess none of these people bothered to know all that and just lapped up all the s*** that the CCP has fed them and went headlong to put their money in China? LOL Oh well they will find out soon enough what's going to happen with their money. This guy already has.
Based on the current political trajectory of both countries, the decoupling process will accelerate. Those China ADRs are at risk. Mark Mobius being in the inner circle already knew this is coming. He should have avenue to get his money out. He might have the main bulk of his money out of China. Now, he is just doing a public service.