China has been battling high debt levels and asset bubbles for years. With Xi's firm grip on power and his administration's heavy-handed approach to controlling financial risks, it'll be harder for companies to push limits beyond what Beijing is comfortable with, observers said.
Investments that support national policies will still be supported, but excessive money flowing out of the country will be more than frowned upon.
"The party always had the final say in investments, but they want the first say in investments now abroad and they want those investments to support industrial policy or the Belt and Road [Initiative]. If not, they want folks to keep that money in China ," Kennedy said.
There are talks of a super-regulator to manage the regulation of banking and insurance industries, and putting economic adviser Liu at the helm of the People's Bank of China will also aid economic transformation.
"This is against the backdrop of much bigger play that's hugely positive for China. Putting the economic mastermind as the PBOC governor actually starts the process of moving it out from the central government," said Brett McGonegal, chief executive of Capital Link International, a financial services firm.
This will set into motion the process of separating the central bank from the government, giving the PBOB ultimate independence to realize the "ultimate goal" of positioning the Chinese yuan as an international reserve currency, McGonegal added.
"It doesn't happen overnight. These steps do take time but the most important thing is if you've a well thought out plan, you're deleveraging and you put the crowd favorite in at the helm of the job to create this independent group to start doing it," McGonegal told CNBC, adding that this process will gain "western acceptance" to move from vision to reality.