Bond market

One of the other significant advantages of being a global reserve currency is that the world central banks will start to look at China's bond market as a risk-free market, Dehn said.

"I think China's bond market is a super interesting market, and I think it is still overlooked by many investors. In the past 18 months, China's bond market is performing better than the US treasury market even in dollar terms," said Dehn.

"And going forward, the world is going to have two major problems: One is how can investors find an alternative investment instrument where they will not lose their money, and the second is where they can find another global reserve currency which is not going to devalue. And China has the answers to both questions," he said.

He said China's bond market is set to rally in the next ten or twenty years and advised China to take more measures to develop the bond market and open the capital account.

"The Western economies have squandered the last seven years without doing any reforms, any deleveraging, and anything that is long-term," said Dehn.

"By doing capital account liberalization, interest rate liberalization, developing its municipal bond market, SDR inclusion, the state-owned enterprise reforms, China is doing more reforms by itself than all the world's other countries put together," added Dehn.