Thus, the cash-thirsty private enterprises can get more financial support through direct financing. And room for covert deals and shadow banks will grow smaller and smaller.

Wang Jinbin, an economic researcher at Renmin University in Beijing, pointed out, "Private capital's entry into the financial sector is an irresistible trend for China, which is conducive to injecting vitality into the financial agencies and improving the financial industry's support to the real economy."

On the external side, the People's Bank of China's intervening in the yuan exchange rate fluctuation will obviously weaken, and its tolerance to the fluctuation range will grow stronger.

The reform plan sets the target that the yuan should become the main international settlement and investment valuation currency and international reserve currency in other parts of the world.

The trend indicates that the PBOC will continue to guide and encourage the market to play a more active role in pricing the exchange rate to foster yuan capital account convertibility and the internationalization of the yuan.

Last but not least, in order to adapt to the potential risks that come with the marketization of China's financial sector and the merging of finance and the Internet, the government must further strengthen its supervision and administration.

The State Council agreed in August to establish an inter-ministerial joint conference mechanism on financial supervision, which will be led by the People's Bank of China and involve the banking, securities, insurance and foreign exchange authorities.

This is a crucial step for the modernization of China's financial watchdogs in that it highlights the coordination of financial supervision across the board, which has long been absent in China.

The plenum will necessarily urge the upgrading of the financial supervision system. The supervisory and regulatory authorities' focus will divert from pre-entry evaluation and approval to the supervision of the financial agencies, private banks and Internet finance.

To translate the liberalization of the financial sector to real benefits for the economy, China urgently needs to establish a deposit insurance system, create an information disclosure system for financial agencies and raise investors' awareness of risk prevention.