Billionaire investor and founder Mobius Capital Partners Mark Mobius told FOX Business he cannot take his money out of China due to the country's capital controls, cautioning investors to be "very, very careful" about investing in an economy under a tight government grip.

"I'm personally affected because I have an account with HSBC in Shanghai. I can't get my money out. The government is restricting the flow of money out of the country," Mobius told FOX Business host Maria Bartiromo. "So I would be very, very careful investing in China."

"I can't get an explanation of why they're doing this ... They're putting all kinds of barriers. 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 made this money ... This is crazy." he added.

Mobius noted that China’s bottom line is moving "in a completely different direction" than its former open-minded-market revolutionary leader Deng Xiaoping.

"Now you have a government which is taking golden shares in companies all over China. That means they're going to try to control all these companies," Mobius explained. "So I don't think it's a very good picture when you see the government becoming more and more control oriented in the economy."

Mobius previously led emerging market investment at Franklin Templeton Investments for three decades and till recently known for his bullish views on China.

The best investment alternative with the most economic opportunity, Mobius advised, is India.

"You've got a billion people, they can do the same thing that the Chinese do. They can do the same kind of manufacturing and so forth," he said. "I'm now in Brazil, and Brazil, you've got 250 million-plus people, very good people, open society. Hey, why not come here? It's another alternative."

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