SHANGHAI (Reuters) – Billionaire investor Mark Moebius told Fox Business the country’s capital controls make it impossible to withdraw money from China, putting investors under tight government control. He warned to be “very cautious” about investing in the economy. .
Mobius, founder of Mobius Capital Partners, told FOX Business in an interview published March 2, .
“I can’t explain why they’re doing this…they’re putting up all sorts of barriers.They say no.No you can’t withdraw money.But they say.If you’re doing this 20 years of all the records of how they made money…this is crazy.”
Mobius’ comments went viral on Chinese social media site WeChat over the weekend.
Mobius has led emerging market investments for 30 years at Franklin Templeton Investments and is known for his bullish views on China. But he now said he would be “very cautious” about investing in the country.
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“The bottom line is that China is heading in a completely different direction than Deng Xiaoping set when he launched his massive reform program,” he said.
“Now the government is taking golden shares in companies all over China, which means they are trying to control all these companies … So when you look at the government, it’s not a very good situation. I think the economy is becoming more and more domination-oriented.”
Mobius, who describes himself as the “Indiana Jones of emerging markets investing,” told Fox Business that he is investing more in alternative markets such as India and Brazil.
Mobius and HSBC could not be reached over the weekend.
Reported by Shanghai Newsroom.Edited by Tom Hoag
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