The People's Bank of China (PBoC) said in a working paper on Wednesday that it expects the Chinese economy to expand 6.9% this year and 6.8% next year.

The central bank noted that industrial overcapacity, weak demand for Chinese goods and rising non-performing loans from banks weigh on the Chinese economy.

Inflation is expected to be 1.5% year-on-year in 2015, exports are expected to drop 2.9% this year from a year earlier, while imports are expected to slide 14.8%.

According to the working paper, the governments' stimulus measures should take effect from the fourth quarter of 2015 to the first half of 2016.