If China hopes to calm the turmoil that has shaken financial markets at home and around the world, and to steer its economy to a soft landing, it must reform its regulatory policymaking regime.

The government itself is a significant source of instability and uncertainty. China needs more professional policymaking to restore confidence, which is possible only if Beijing stops intervening in markets arbitrarily and allows regulators independent oversight.

By now almost everyone is familiar with two agencies: the seemingly careless China Securities Regulatory Commission and the uncommunicative People’s Bank of China . During China’s dramatic stock market crash in June and July last year, the CSRC was busy changing rules on the fly: limiting stock index futures trading, banning short selling, cutting margin ratios, locking up the holdings of large shareholders and then investigating for potential legal actions short-sellers and those selling off big blocks. These hasty rule changes, imposed for the immediate convenience, created much uncertainty for investors.