KPMG International's Global Chairman John B. Veihmeyer asked the premier how the country will strengthen its capital markets and financial system.

Li said, "Like the Chinese economy, it is hard to avoid short-term volatility in China's capital markets, but we won't allow skyrocketing rises or precipitous falls in these markets."

The country will take measures to stabilize its financial market and avoid huge fluctuations, he said.

The Shanghai Composite Index rose by 0.58 percent to 2,912.56 on Tuesday, rebounding to a three-week high.

Replying to a question from Matthew Prince, co-founder and CEO of CloudFlare, an internet performance and security company, Li said China is committed to transforming its manufacturing sector by using the latest technology to meet diverse demands.

For its manufacturing industry to become smarter, it must count on the internet, cloud computing and big data, and the sector must adapt to changes in market demand, he said.

Li suggested that CloudFlare cooperate with more cloud computing startups in China, in addition to partnering with Chinese giants such as Baidu.