Safeguards to check cooling

To curb market turmoil, the PBOC has injected more funds into the stock market, and also lowered interest rates and the cash that needs to be held as reserves by financial institutions.

Wang Hongzhang, chairman of China Construction Bank Corp, said that the "market-saving measures" have been effective so far.

"The measures seek to protect investor interests, which is the right decision. They have also helped consolidate market confidence and increased optimism of a global economic recovery."

As part of the reforms, financial regulation needs to be improved further to avoid market volatility, said economists. The whole economic transition process, which the government plans to complete by 2020, may take even longer to complete, but will eventually pave the way for a high-quality growth pattern that is more sustainable in the long run.