China's central bank says the assessment made by the IMF was "overall objective and positive; and the recommendations on the future reforms are constructive." However, the central bank also says the time frame and suggested priorities of some proposals needed to take into account "many realities" in China.

According to the report, Chinese banks need to upgrade their risk-management systems, by hiring skilled personnel and raising disclosure standards.

Wang Songqi, deputy director of Financial Research Institute, CASS, said: "What’s the point of such report? Basically it helps a country to realize its vulnerability, second to push financial reform, and lastly it helps to strengthen the stability of financial system. "

Experts say the report indicates that China’s financial sector is more transparent than before.

Wang Songqi said: "This means that China’s financial system is becoming more transparent. We can show the world achievements made by our financial sector reforms, and to allow the rest of the world to be better acquainted with China’s progress of reform and innovation."

The country’s central bank adds, China has made substantial progress in interest rate and exchange rate reforms, and will remain flexible in advancing those changes.