Fang Xinghai, Director-General, International Economic Department, Office of the Central Leading Group for Financial and Economic Affairs of China attends the session 'Where Is the Chinese Economy Heading?' of the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland January 21, 2016. [Photo/IC]

"China is in the midst of a major transition, and in the process a lot of assets will be revalued," said Fang Xinghai, director-general of International Economic Department, Office of the Central Leading Group for Financial and Economic Affairs of the People's Republic of China.

He said it's a combination of Chinese and global factors that have caused recent volatility, referring to the raising of rates by the US Federal Reserve, and the poor performance of emerging markets.

Fang said he has no doubt that China has the talent to adapt.

Government service and public service still carries very high esteem in China. The market is complex and sometimes China doesn't deal with this sophistication as well as it could, he explained.

"But we'll learn," he added, as the reform strategy is on track.