Capital inflows help to develop financial markets and promote economic growth, but they also pose risks that may undermine financial stability. Consequently, policymakers have developed their policy toolkits to include capital flow management and macroprudential policy measures, and encourage international financial institutions to adopt more flexible positions vis-à-vis their application. This study investigates the impact of short-term capital flows, namely, portfolio and other investment flows, on selected ASEAN+3 economies. The empirical results show that capital flows matter for growth through the financial stability channel, that is, capital flow surges can put growth at risk. Moreover, the findings suggest that the effects of capital flow shocks are economy-specific. These findings could contribute to the policy debate on how capital flow management and macroprudential policy measures should be deployed.