Potential investors in China’s valuable assets should be “very, very careful” because of potential problems with withdrawals from the country. Local authorities have made “crazy” requests to provide data on the origin of money, for example, over the past 20 years, opens Words from Mark Mobius, founder of FOX Business TV channel Mobius Capital Partners.
“Personally, I suffered because I had an account with HSBC in Shanghai. I can’t withdraw my money from China. The local government restricts the outflow of money from the country. So I would be very, very careful when investing in the Chinese economy,” Moebius warned.
At the same time, the requirements put forward by the Chinese authorities to disclose the origin of the funds seem almost impossible in practice. All these factors, he explained, ultimately created major obstacles to the withdrawal of funds to foreign countries.
“They put up all kinds of barriers. They don’t say, “No, you can’t withdraw your money.” But they say: “Give us all 20 years of records of how you made this money.” It’s crazy, ”Mobius finished.
March 5 reportedThat the Chinese government has set a GDP growth target of around 5% for 2023. At the same time, this increase is planned to be achieved despite the negative consequences of the so-called “zero tolerance” policy towards the spread of coronavirus in the country.