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The figure for income gap is about 26 percent higher than that of 1997 and 68 percent higher than that of 1985, it said, adding it far exceeded figures of the same kind in many foreign countries.

Government reforms designed to reduce the overall tax burden and balance the country's economic structure will also have an effect on the market during the second half. The reforms are expected to be unveiled during the next executive meeting of China's cabinet, the State Council.

Premier Wen Jiabao said Tuesday that stabilizing economic growth is the most pressing matter currently facing China. He said policies and measures to stabilize economic growth currently include boosting consumption, diversifying exports and promoting investment.

"Of course looking at it today, the speech had huge limits. It gave excessive emphasis on the relations between culture and politics and on literature's class nature, but ignored the human nature of literature," he said.

Peng Wensheng, chief economist with the China International Capital Corporation Limited, told the newspaper that the central bank is highly likely to slash interest rates soon, and may further cut banks' reserve requirement ratio as many as three times within the year in an effort to stabilize real economy.