Financial reform is only way forward

Fluctuations expose risks during crisis, and the price paid for rescuing the market is impossible to ignore

For investors, the stock market turmoil has been a terrifying experience. But when you look at the broader picture, the crisis has offered a unique learning opportunity for the financial regulator and the industry as a whole.

From mid June to early July, the Shanghai Composite Index tumbled nearly 30 percent from its highest point, wiping off nearly $3 trillion in the value of shares. Government initiatives have since stemmed the slide, but the market is still prone to violent swings.