Investor Mark Mobius Can't Pull His Cash Out Of China

Mark Mobius said last week he couldn't pull investment funds from his bank account in Shanghai, telling Zinya Salfiti of Business Insider that China's government was putting "all kinds of barriers" up and he would be careful investing there.

Photo Insert: Mobius said he can’t move 3 million yuan ($432,270) offshore amid “crazy” documentation requests.

But Chinese officials told CNBC in a statement Monday that the country hasn't added any restrictions on outflows. Officials from the State Administration on Foreign Exchange (SAFE) have told CNBC that nothing had changed in the country's policy on cross-border fund transfers.

Officials told CNBC it's merely a matter of a "basic process and internal control requirements of the bank handling specific business."

"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," Mobius howled.

He said he can’t move 3 million yuan ($432,270) offshore amid “crazy” documentation requests. Mobius is best known for his early investments in developing countries over a multi-decade career at Franklin Templeton, Reuters reported.

Gary Ng, a senior economist at Natixis SA, said the case is probably related to the internal “know your client” process, which can vary among banks.

“While China has increased the scrutiny of cross-border capital flows under its regulatory framework since 2015, it is unlikely to restrict receipts from portfolio investment amid its gradual financial opening, especially from corporates,” Denise Wee, Abhishek Vishnoi and Ran Li reported for Bloomberg News.

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