Subsequent to World Bank's Monday forecast of weakening Chinese economy, top-notch investment gurus advise China to temporarily dwell on the slow improvement period and avoid quick but riskier gross domestic product recovery. 

This measure might be dismal for some investors but could be beneficial in the long run especially that real estate market growth in China has significantly declined since 2009.  Experts further that if Beijing does not address the matter accordingly, it could result to inflated government debts and harrowing real estate crisis.

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Statistics show that industrial services dropped to 6.9 percent last August which is significantly lower than the June (9.2 percent) and July (9 percent) data.  Also, exports drew a sharp fall of 9.4 percent from 14.5 percent in the beginning of third quarter this year.

To balance the loss and gain, China intends to internationalize its yuan denomination using the Qualified Domestic Retail Investor.  QDRI aims to provide channels for Chinese investors to buy stocks direct from London or Singapore.

National banks like Peoples Bank of China and Agricultural Bank of China announced that they are currently in preparation for Global Depository Receipts issuance to expedite the use of yuan in buying stocks in Hong Kong and Shanghai as well.

According to China Daily, market restructuring will have an indefinite downturn on the economy depending on the government's approach.  Economists advise to proceed with a "new normal" strategy, a phrase coined that rules out the possibility of returning to old growth tactics.

Instead, the Chinese needs to push for total industry reform including the abolishment of monopoly in oil businesses.  Policymakers should open opportunities for non-state investors to address growing energy demand and pollution.

Experts conclude that however China decides to tackle current market trends and challenges will determine its future as a global economic power.

TagsChinese market restructuring