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00:00Give us a sense of how you are assessing developments in China. Do traders, are traders at risk of getting the call wrong when they said that, you know what we've seen bottom for China and Hong Kong stocks? Well, first of all, you have to assess what is going to happen going forward. And it's clear to me that she cannot tolerate any protests. So there will be a very tough crackdown on any protesters. More people will be arrested and they will probably go further in terms of control, population control in many areas. So if you have that kind of scenario, then you've got to consider that the market will probably not do that well in the short term. Once that's over, then people you know, people's memories are very short. They'll say, OK, now is the time for some recovery of the market. Then you may see some recovery. But right now, I think hoping for a change in attitude on the part of the central government is not in the cards, given the correction that you're anticipating. One, how deep a correction will that be? And to and what point might you be interested in buying Chinese a Hong Kong stock? Well, first of all, you can't go much lower than we already are. I mean, maybe another 5, 10 percent. But we're already down at the bottom in some of these stocks look very, very cheap. The problem that I have is from a longer term perspective, I'm talking about four or five years is what you know, what our view is, what happens if China decides to attack Taiwan? Because if you have that kind of scenario, then it's going to be like Russia. You know, all of the investments in China will be lost. You will lose anybody who's in China will lost everything they've put in. So this is the kind of thing we have to look at very carefully. And the only thing that would change that would be a change in the leadership in China. Mark, protests, of course, down the streets on a new dimension to it and a funny sort of way. Also, you know, one of the classic ways of distracting people is to get involved with something geopolitical. What are your thoughts on all that? Well, you know, it's really remarkable that you see these protests, given the incredible amount of control that has been imposed on the population as a result of not only Covid that the general surveillance system that the government has put in place. I mean, the technology now is so sophisticated that they can track everybody and anybody at any time. So it's really tells you that people are very, very frustrated and they're willing to give up everything in order to get out of this situation. But as I said, I think the government will let up. I think the government will, in order to survive, must crack down harshly on any protesters. They have to jail thousands of people and they have to increases surveillance in order to survive. So that, you know, some pretty bleak aspect. Yes. So, you know, with every reaction, you get an opposite and equal reaction. And that's the danger here. This could get out of control. Is that your fear? I doubt if we will get out of control in the sense of the government losing power in the short term. We're from a longer term perspective. Yes, but from a short term perspective, no, she will not move from his position and probably will become more strict in his crackdowns. And you must remember, at the end of the day, he is moving more towards a Maoist style government. In order to do that, he must eliminate all opposition. And as you know, if you look at the party Congress situation and the scenario that we saw there, he definitely is looking for complete control.

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Mobius: Chinese Markets Won’t Do Well Short-Term

Mark Mobius, founding partner at Mobius Capital Partners, discusses Chinese markets, how low markets will go and the protests over Covid restrictions. He speaks on Bloomberg Television. (Source: Bloomberg)

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