Chinese Premier, Li Keqiang has revealed that the country is planning for annualised growth of 6.5% over the next five years, down from the current minimum target of 7%.

This is the first time a top Chinese leader has publicly acknowledged lower growth targets and came as he addressed a South Korean business group in Beijing.

He said global concerns about the country’s slowing growth rate were "excessive," that economic output was still increasing and that China would still meet its target of creating a "moderately prosperous" society by 2020.

"The growth slowed from 8 per cent, to 7.7 per cent, 7.4 per cent or about 7 per cent. But the economic output was still increasing at an orderly pace," Li said.

Meanwhile China’s manufacturing sector has declined unexpectedly for the third month in a row.

The country’s Manufacturing Purchasing Managers’ Index recorded a reading of 49.8 – below the 50 level that divides rising and declining output.

"The slight upswing shows the manufacturing industry's overall weakening has slowed down, indicating that previous stimulus measures have begun to take effect," said He Fan, Chief Economist at Caixin Insight Group, the firm who published the index.