Yes, China, where even basic corporate information is hard to get and several leading fund managers were caught in an embarrassing stock-manipulation scheme last year.

"In comparison with other countries in Asia, China is doing a pretty good job," insists the ultramobile Mobius, manager of Templeton's $220 million Emerging Markets Trust. "They're attempting to have strong regulation, giving the securities commission more power and trying to apply regulation without fear or favor."

Mobius, 63, notes that China has even sought foreign expertise to help upgrade supervision. Most prominent among the imported cops: Anthony Neoh, former chairman of Hong Kong's Securities and Futures Commission, and Laura Cha, the commission's onetime deputy chairwoman.

"Korea, Taiwan, Singapore - even Hong Kong to a lesser extent - are going to feel the heat if China keeps on the way it's going," contends Mobius. What's the benefit for the country? China will attract more capital than its Asian rivals and receive higher market valuations for its companies.