The Chinese stock market ended 2012 on a slight high, with the benchmark Shanghai Composite Index closing with a 3.17 percent tick-up. However, continued recovery will not be possible without real reforms this year.

The market's success in ending the year on a high note is thanks to a strong rally in the last trading days, with the Shanghai index rising more than 15 percent.

But it is too early to tell if the rally results from any systematic improvement in the ailing Chinese market.