International Investing

Capital goes where it is wanted and stays where it is well-treated. - Wriston’s Law
After a massive stock market plunge of 16% Thai authorities removed the restrictions they had put into place about foreign ownership. The rule imposed a penalty to prevent funds from being taken out of the market unless they had been in the country one year. Bloomberg reports on the result:

The government lifted a requirement that banks lock up 30 percent of new foreign-currency deposits for a year for funds earmarked for stocks, Finance Minister Pridiyathorn Devakula said in Bangkok. The rule, intended to slow a 16 percent gain in the Thai currency this year that threatened exports and economic growth, sparked investor selling that wiped out $23 billion of market value in Thai stocks.

What an embarrassment! Even the barrel of the gun is no match for the capital markets.