Investors look at computer screens showing stock information at a brokerage in Shanghai, August 13, 2015.[Photo/Agencies]

The reform, if it goes ahead smoothly, means foreign capital will be able to directly open and run exclusively-funded security, asset management and futures enterprises in China in three years.

The opening-up of China's financial market started after its entry into the World Trade Organization in 2001. As of 2012, China had opened its main financial sectors, including banking, securities, insurance, futures, lease, fund, trust, asset management, bond, financial investment and financial consumption, to foreign investors.

But the opening-up process has been gradual, with strict upper limits on the share holding ratios for foreign investors.

The government has vowed on a number of occasions to accelerate financial reforms, especially supply-side structural reforms.

Many people said worryingly "the wolf is coming" when China opened up its banking industry to foreign banks after it became a member of the WTO. In 2000, there was not a single Chinese bank among the world's top 10. In 2013, four of the top 10 banks were Chinese.

Opening-up and reform did not weed out the Chinese banking industry, but made it stronger. China's prudence in financial reforms is paying off, because it ensures a win-win situation for both foreign and domestic players in the process, while minimizing the uncertainties and risks that are often associated with financial reforms.

Sixteen years after joining the WTO, and now the world's second-largest economy, China has the confidence and capabilities to take the initiative and carry out more financial reforms.