"We must very closely watch the market, particularly the financial sector," he said, adding that total debt levels in the world's second largest economy should also be carefully monitored.
His words come after China's top brass pledged further reforms over the weekend while dispelling fears of a hard landing. On Saturday, Premier Li Keqiang announced a growth target of between 6.5 and 7 percent for 2016 at the annual National People's Congress, down from last year's "about 7 percent."
The pledges came amid concerns about the state of China's economy and Beijing's ability to manage its own economic transition to a more consumer-led economy. Such concerns have even roiled market sentiment around the globe and augmented some steep drops for equity markets since last summer.
In a report last year, the International Monetary Fund underlined the challenges being posed, highlighting that the "current growth model" was not an option for China.
"China still has the buffers and tools to prop up growth through continued reliance on credit and investment-fueled growth. However, over time, declining efficiency of investment would weigh on growth and further strain the repayment capacity of the corporate sector," the report stated.