The fears about the economic meltdown in China are overblown. The mismatch between progress in economic rebalancing and setbacks in financial reforms must ultimately be resolved as China transitions to new growth model. But it does not spell imminent crisis.

Stabilizing the RMB exchange rate not only requires comprehensively striking back the short-selling speculation but, more importantly, reversing the expectation of RMB depreciation and well managing the expectation. Substituting a new exchange rate index for the old exchange rate index has not impressed the international market. The RMB exchange rate should be anchored to the USD exchange rate to build confidence.

For all the hand wringing over China’s economic slowdown, the employment picture has so far remained immune to tumbling stocks, a sliding currency and waning industrial growth.

Falling growth in the world’s second largest economy has concerned investors and roiled financial markets so far this year, along with falling oil prices, but China’s Vice President Li Yuanchao put a positive spin on his country’s lowest growth in a quarter of a century in a speech at the World Economic Forum on Thursday.

Amid the gloom hanging over China, a senior adviser to Chinese President Xi Jinping gave a rare defense of the country’s economy, saying Beijing has strong leadership to continue its effort to remake the country’s growth model while pledging not to launch massive stimulus to revive growth

As it acts upon the 13th Five Year Plan, Beijing must combine government fiscal investment, corporate R&D, industrial investment, venture capital, bank credit investment, capital market financing, science funding and more, to make a financial system with a full range of support to update China’s economy. An efficiently operating system will be key to the nation’s future competitiveness.

China’s economy grew at its slowest pace since 1990 last year but stayed within range of the government’s target, as growth in services such as finance and healthcare cushioned a slowdown in manufacturing and construction.

China isn’t facing a "cataclysmic" economic slowdown and last week’s market turmoil was more about badly designed stock market circuit breakers, said Nobel-prize-winning economist Joseph Stiglitz.

China will use market solutions to ease its overcapacity woes and will not use investment stimulus to expand demand, Premier Li Keqiang said during a recent visit to northern Shanxi province, according to state media.

The Asian Development Bank president said Friday he is optimistic China's economy will post healthy growth of 6.7 percent this year despite jitters over the yuan's depreciation and a plunge in Chinese stocks.