Mark Mobius, who oversees more than $40 billion as Singapore-based executive chairman of Franklin Templeton’s Emerging Markets Group, comments on China’s efforts to accelerate the opening of its capital markets. He spoke to the media in Bangkok after a conference.
The China Securities Regulatory Commission increased the quotas for qualified foreign institutional investors to $80 billion from $30 billion, according to a statement on its website on April 3.
On China’s additional foreign investment:
“The amount is still too small. There is also a restriction that you have to invest for at least a year. Our fund is an open-ended fund. Anytime people want the money back, we have to give that to them. We can’t do that with China because money has to be locked up for one year. However, it’s a good step for Chinese development.
‘‘The Chinese government wants to put more money in the hands of its population. The largest investors in the Chinese stock market are individuals, not institutions. This is one way for the Chinese government to put money into the hands of the individuals by pushing up the stock market.”
On Templeton applying for additional quota:
“We do have some quota. I’m not sure yet if we will apply for more. We already have exposure to Chinese equities through the Hong Kong market, the H shares and B shares.”
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