In terms of capital markets, interest rate liberalization and a more market-oriented exchange rate are central.

FORBES: China's Growing Contradictions

For instance, with assistance of rapid increase in wage rates, expected interest rate liberalization and further reforms, China is probably close to a turning point when income distribution switches from deterioration to improvement.

FORBES: What Could Derail A Middle Class China?

Conditions are "basically ripe" for interest-rate liberalization, China's central-bank governor said, bolstering other leaders' calls for economic reform.

WSJ: What's News

There was also some interest-rate liberalization as Chinese banks are now allowed to lend at a discount of up to 20% below the benchmark, compared with a previous floor of 10%.

WSJ: China Rate Cut Spooks Asia Markets