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Monetary policies have been very expansive in recent years and It's totally premature to speak of a crisis in China.

China's economic slowdown and a sharp fall in its stock market herald not a crisis but a "necessary adjustment" for the world's second largest economy, Carlo Cottarelli, an IMF executive director representing countries such as Italy and Greece on its board said on Aug. 25, 2015.

"Monetary policies have been very expansive in recent years. It's totally premature to speak of a crisis in China. China's real economy is slowing but it's perfectly natural that this should happen," Cottarelli added.

The worry about China's economic slowdown hammered global stock market.

News reports that China's economic situation and its fallout on the stock market and the price of commodities are concerns to the US stock dealers.

However, the senior IMF official believes it's too early to call China's downturn a "crisis". "China's real economy is slowing but it's perfectly natural that this should happen," Cottarelli said at a press conference in Italy.