Wu Xiaoling from the Economic and Financial Affairs Committee of the National People's Congress, says investors should offer the debt-to-equity swap to quality companies and gradually reduce the leverage ratio. But for zombie companies, or those that lack value or have no market outlook, they should go directly to the bankruptcy process and leave the market.

The president of the National finance and development laboratory -- Li Yang -- said the institution of major financial regulatory agencies divides their supervision and puts their policies at odds. Li said that leads to regulatory arbitrage and the real economy can't get funding support. Li also said that would increase systemic risks in the long run.

The chief China economist of the HKEX -- Ba Shusong -- says China's economy is entering into New Normal and the financial market needs an overhaul. Ba says the New Third Board should loosen the threshold to let in more market makers while regulators should strengthen investor protection, and restrain back-door listings through shell firms.