Asia Flings Open Doors to Foreign Cash. But There's a Catch
- Foreign investors face capital flow and trading restrictions
- Memories of the Asian financial crisis still spook leaders
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Asia’s biggest emerging markets are flinging open their doors to court overseas investors, but there’s a catch -- and it’s a big one.
China, India and Malaysia have pledged to open up channels for foreign money to flow through their markets, with policy makers and heads of state publicly proclaiming their wish to be full-fledged members of the global financial system. But the reality often falls short of the rhetoric as national governments insist on maintaining regulatory systems designed to keep capital flows and trading rules under tight control.