People’s Bank of China Governor Zhou Xiaochuan over the weekend sounded a warning over the country's rising debt levels, saying corporate lending as a ratio to gross domestic product had become too high and the country must develop more robust capital markets. According to the Organization for Economic Cooperation and Development, corporate debt alone now stands at 160 percent of China’s GDP.

The statement is quite rare from a central banker despite the fact that the market has been discussing China’s debt problem for a long time and suggests that Chinese leadership will press ahead with necessary structural reforms even as economic growth slows.

Zhou said that China still has a problem with illegal fundraising and financial services are insufficient. He added that the country should channel more savings into the capital markets, which will help companies increase equity financing and reduce reliance on debt.

"China was in the middle of a historic transition that was 'good for China and good for the world'. The world will be watching closely to learn from China as it deftly manages the delicate balance between economic transformation and deeper global integration,” said Christine Lagarde, IMF managing director, also speaking at Sunday’s conference.