China reports lower-than-expected output, investment data

"We believe that the Chinese economy is still facing mounting downward pressure authorities may need to loosen monetary policies and enhance fiscal support to stabilize growth," according to a research note by Minsheng Securities.

Chinese Premier Li Keqiang said last week that he was fully confident of the Chinese economy.

"Our country's development has enormous potential and is hugely resilient, with ample room for growth."

He said China must maintain steady growth to ensure employment rates and income continue to increase, hailing mass entrepreneurship and innovation as new growth drivers.

Qian Yingyi, dean of the School of Economics and Management at Tsinghua University, said: "To counter the economic slowdown, the government needs to create space and opportunities for the market and enterprises."

Qian said the government should further streamline administrative power, boost fiscal and state-owned enterprises reform restructuring, and promote financial innovation to cope with the growth slide.

China's gross domestic product (GDP) expanded 7.4 percent last year, its lowest level of growth since 1990. The annual economic growth target for 2015 was set at around 7 percent.

To boost the economy, the central bank has cut the benchmark interest rates twice and dropped the reserve requirement ratio (RRR) for banks over the past four months.