Investors looking to profit from emerging markets in the long term should keep a close eye on the China’s relations with Taiwan, a veteran money manager warned. 
 
“There’s no question that China needs more capital. They need foreigners to come in and provide them with more capital,” Mark Mobius, the founder of Mobius Capital Partners, said in a BNN Bloomberg interview on Thursday.

“The problem that we have, and a lot of other institutional investors have, is that China’s attitude towards Taiwan is not very good,” he said. 
 

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He noted that while there may be investor interest in China for the short run as it reopens its economy following COVID-19 lockdowns, the opportunities to make profits might not last long. 
 
“In the long term (investors) must be very cautious (in the Chinese market),” he stated. 
 
For this reason, Mobius prefers to remain bullish on India. He also see’s promising investment opportunities in Brazil, Indonesia and Thailand. 
 
One strategy Mobius is currently using to gain profits within the emerging markets is to capitalize on weakened foreign currency rates against the U.S. dollar. 
 
“We’re looking at companies that are exporting in U.S. dollars and their costs are in local currency which have devalued against the U.S. dollar," he explained.