Liberty Times reported that the wealthy American investor Tim Draper announced that he has stopped investing in China or in any companies headquartered in China, due to difficulties in getting money out of China.
Draper is a famous investor from the United States. In the past, he successfully invested in Tesla, Hotmail, and Skype.
In the past few years, China has experienced a slowdown in economic growth and in money outflow. To reduce the pressure on Renminbi devaluation and save its foreign reserves that have been dropping rapidly, Beijing has taken a series of actions since November of last year to tighten the control of capital, preventing companies from sending money out of China.
Itamar Har-Even, the Co-CEO of Ion Pacific, a Hong Kong consulting company for investment banking and funds management, thinks that China’s capital control has hurt many companies’ global investment desires. He said, “We have spent a lot of time (thinking about) how to get money out of China.”
Source: Liberty Times Net, June 7, 2017