Goldman Sachs downgraded its growth forecasts for China on Monday. The bank expect the Chinese economy to expand 6.4% in 2016, down from the previous forecast of 6.7%, 6.1% in 2017, down from the previous forecast of 6.5%, and 5.8% in 2018, down from the previous forecast of 6.2%.

Goldman Sachs' forecasts are based on labour, capital and productivity.

"In China's case, each of these three components is expected to decelerate: labour due to demographics, capital deepening as the capital share of the economy comes down from exceptionally high levels, and total factor productivity growth as the economy narrows the gap with the richest economies," the bank said.