Mark Mobius claims that the 'Chinese government is restricting the flow of capital'

Billionaire investor Mark Mobius has claimed that the Chinese government is restricting the flow of money out of the country. Mobius has called on those who want to invest in China to be “very, very careful” under strict controls, but government officials have denied the allegations. In an interview with Hong Kong newspaper Ming Pao, emerging market investor Mobius said he had difficulty withdrawing about 3 million yuan offshore due to the government’s “absurd” document requirements. In an interview with Fox Business, Mobius said the Chinese government was trying to restrict the outflow of money, saying, “You have to be very, very careful when investing in China.” Mobius reportedly tried to make the money transfer from Shanghai’s HSBC for a property sale, but was unsuccessful. Although the details of the money transfer are unclear, it is said that other domestic and foreign investors in China are experiencing similar problems. The country’s capital outflow restrictions are stricter than those in other emerging economies. The economy has also become increasingly fragile over the past few years, prompting the government to take even tougher measures. This latest development could cause a headache for the Beijing government, which is trying to attract foreign investors. The Chinese government responded to Mobius’ statements. Officials who made a written statement to Bloomberg denied Mobius’ claims and reported that there was no change in capital transfers abroad. A spokesperson for HSBC China, who declined to comment on personal accounts, said that there had been no request from Chinese regulators to limit capital flows. Natixis Senior Economist Gary Ng said that this situation is likely part of the “customer identity verification” process and that there may be differences between banks.