The central government has made a series of new decisions to help arrest the recent speculative sell-off in domestic stock exchanges.

To the surprise of many, in the absence of any clear and present shock to the world's second-largest economy, the sell-off has already chopped the total market value of Chinese shares by about 30 percent since its more than 10 trillion-yuan peak in early June. Unavoidably, painful losses have been seen by some investors, especially those highly leveraged funds that used to be the most daring players in the market.

Too wild fluctuations are both unwarranted and unwanted, because they hurt small investors and may cause a panic and other complications that affect the state of the real economy.