Last week, China's leadership unveiled a reform agenda for the next decade, pledging to let the market play a "decisive" role in the economy and outlining sweeping changes to unleash fresh drivers of growth.

Guo Weimin, an official with the State Council Information Office, said minister-level officials will be invited to give news briefings on the reform agenda in coming days.

The Third Plenum agreed to expand vehicles for financing urban construction, and Yang said this indicates that local governments will be granted the right to raise debt directly.

"To that end, the Budget Law, which prohibits such debt-raising, should be revised," he said.

Yang dismissed any concerns that the gradual opening of local government debt-raising will lead to uncontrollable risks, saying that many measures pledged in the reform agenda are designed to ensure an improved local tax system and that more involvement of private capital in infrastructure construction will ease the burden on governments.

Davide Cucino, president of the European Chamber of Commerce in China, called the decision a wide-ranging and ambitious plan but said the hardest steps lie ahead.

He noted that the full benefits of further opening up can only be realized if access is granted to all players and not just domestic companies.

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