Taps Coogan – March 4th, 2023
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Mark Mobius, Mobius Capital Partners founder, legendary emerging markets pioneer, and John Templeton acolyte recently spoke with Fox Business about the troubling changes he sees in China.
Some excerpts from Mark Mobius:
“You’re seeing the beginning of (reopening demand for commodities)… but the bottom line is that China is moving in a completely different direction than what Deng Xiaoping instituted when they start the big reform program. Now you have a government which is taking golden share in companies all over China. That means that they are going to try to control all these companies… I don’t think it’s a very good picture…”
“I’m personally effected 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. I would be very, very careful investing in China. What we are doing is going into Hong Kong, which seems to be a little more open and able to get money in and out… I can’t get an explanation of why they are doing this… They don’t say ‘you can’t get your money out,’ but they say ‘give us all your records for 20 years of how you made this money’ and so forth. It’s crazy.”
On where he prefers:
“India, number one. They’ve got a billion people and they can do the same… kind of manufacturing and so forth (as China) and I’m now in Brazil. You’ve got 250 million people, an open society, hey, why not come here? It’s another alternative.”
Mark Mobius, who is 86 years old, has spent his entire adult life living, working, and investing in emerging markets. He has been investing in China for decades and lived in Singapore for years. There is probably no one alive with more relevant experience to be delivering this message.