The International Monetary Fund (IMF) has impressed upon Chinese leaders to rebalance their economy, by reforming its exchange rates and capital markets.

IMF managing director Rodrigo de Rato highlighted the need to sustain the double-digit GDP growth while also acknowledging its emergence as a major economic power through rapid growth, job creation, and poverty reduction.

Rato said that the IMF agreed with the Chinese government about rebalancing the economy away from its dependence on investment and exports towards consumption and the need to share prosperity more equally across society by addressing rural-urban income discrepancies.

The IMF chief held consultations with premiere Wen Jiabao, finance minister Jin Renqing and the governor of People's Bank of China, Zhou Xiaochuan.

Rebalancing China's giant economy would require wide-ranging policy reforms like curbing rapid credit and investment growth to prevent overcapacity in certain sectors, Rato said.