China Says 'No Change' In Banking Policies After Mobius Claims Money Trapped
Update (1033ET): China's State Administration of Foreign Exchange says there's been no changes in cross-border fund movement policies in response to Mark Mobius' claim that he can't withdraw funds from the country.
According to local media outlet Cailian (as noted by Bloomberg), Mobius' issue has to do with the basic process and internal control requirements for banks to handle particular types of business.
- The regulator will continue to advance opening-up of high level, and guide and urge commercial banks to optimize cross-border financial services and improve services, Cailian cites the official
- An HSBC representative said the bank hasn’t received any request by Chinese regulators to restrict fund outflow, as well as not knowing any recent policy changes regarding cross-border funds remittance, Cailian reports
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Emerging markets investment pioneer Mark Mobius says that China is blocking his ability to withdraw money from the world's second-largest economy.
"I'm personally affected because I have an account with HSBC in Shanghai. I can't get my money out. The government is restricting the flow of money out of the country," Mobius told Fox Business on Thursday. "So I would be very, very careful investing in China."
Renowned investor Mark Mobius says he can’t get his money out of Shanghai.— Marco Castelli (@macastel3) March 4, 2023
As a foreigner in China, we all know that you can’t move money easily and you need to keep all the tax records if you want to wire money abroad.
I am actually surprised he has an account here….🤦♂️ pic.twitter.com/uoSIGVpEFC
"It's just amazing. They're putting all kinds of barriers," Mobius continued. "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."
Mobius says that Hong Kong "seems to be a little more open," and that he's been able to get his money "in and out" of there.
According to Mobius, China under President Xi Jinping is operating "in a completely different direction" than the country's former market-friendly leader Deng Xiaoping.
So where to invest? India or Brazil, according to Mobius.
"You've got a billion people, they can do the same thing that the Chinese do. They can do the same kind of manufacturing and so forth."
"I'm now in Brazil, and Brazil, you've got 250 million-plus people. Very good people, open society. Hey, why not come here? It's another alternative."