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During a visit to a hospital, he said greater policy support was needed to remove restraints on medical research funding and medicine approvals.

Dongfeng Yulon said on its official website that it will start a series of moves in July covering management, resources and finance. It plans to put in place a team of professional managers.

Dong said the moves by the China Securities Regulatory Commission are important for maintaining a regular pace of IPOs and promoting the reform of the registration-based IPO system.

Donna Kwok, a senior economist at UBS Investment Bank, said that effective cross-border capital flow management, the weakness of the US dollar and improved onshore sentiment bolstered by a better domestic growth outlook have helped stop the decline of China's foreign exchange reserves.

Dr Alice de Jonge, senior lecturer in Business Law and Taxation at Monash University agreed, saying that this move is part of a process to open and expand China, in a number of key sectors.