During times of global economic downturn, the government would rather encourage domestic consumption than release a stimulus package, indicating tolerance for slower growth during the reform process, said Xu Shaoshi, director with the National Development and Reform Commission.

According to Xu, of the nation's 7.6 percent GDP growth in the first half of this year, 3.4 percentage points were boosted by consumption, a positive sign that the country is depending more on domestic consumption, rather than exports.

To further release market vitality, the central government has vowed to reform government functions, and has scrapped or transferred 334 administrative approval rights.

On July 20, the People's Bank of China removed the floor for lending rates, another important step in the reform process to revitalize the market.

More hopes for deepening reforms have been pinned on the upcoming Third Plenary Session of the 18th Communist Party of China Central Committee. Chinese president Xi Jinping, also general secretary of the CPC Central Committee, said on Saturday that a blueprint for comprehensive reform would be put forward at the plenary session.

Feng Fei said the new administrative system should give the market a bigger role, and advised the government to strengthen information disclosure to better serve the market.

"Governments at various levels should restrict and administer investment through energy saving, environment protection and production safety criteria, instead of business scale and profitability, which investors themselves definitely care about," he said.