by Mish Shedlock, Mish Talk:
Billionaire Mark Mobius has investments stuck in China. The Chinese government is making it impossible for him to cash out. What’s going on?
Please consider ‘I Can’t Get My Money Out’.
- Emerging markets investing veteran Mark Mobius says China is restricting capital outflows.
- He told Fox Business’ “Mornings with Maria’ that he couldn’t pull investment funds from his account in Shanghai.
- “I would be very, very careful investing in China,” the founder of Mobius Capital Partners said.
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“It’s just amazing. They’re putting all kinds of barriers,” he said. “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’ve made this money,’ and so forth. It’s crazy.”
Also consider the Reuters report Billionaire investor Mark Mobius says he cannot take money out of China -FOX Business
“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.“
Capital Flight RulesÂ
I had this Mobius exchange on Twitter with Keith Weiner.
Too Big to Succeed!
Amusingly, and I have never heard this expression before, but Mobius is “Too Big to Succeed!”
What’s Really Going On?
I suspect two key things that Mobius should have seen this coming.
- China has capital controls to prop up the yuan.
- President Biden is far more belligerent towards China than President Trump.
