In such a process, the key is to foster and develop investors, including institutional investors as well as individual investors, who can recognize specific risk and have the ability to undertake risks. Third, analyses and research should be strengthened to detect bubble risks and prepare for different scenarios.
A book called Extraordinary Popular Delusions and the Madness of Crowds describes the bubbles of early years of western financial markets. The title of the book is interesting because it reminds participants in the financial markets to keep rational. When the market goes to overheat, participants often see their reasoning weakened and even many of them try to explain away or defend such irrationality.