Although it is believed to be controllable, China's overall debt level could bring serious problems if its economy continues to slow down.

It is quite urgent for policymakers to strengthen debt oversight to reduce potential risks.

The International Monetary Fund warned on Wednesday that China's overall government debt is about 50 percent of its GDP, up from 40 percent in 2012 and 37.8 percent in 2011. Chinese experts and foreign investment banks have sounded similar alarms recently, although they differ over the exact scale of the debt because they use different criteria for their calculations.