China's financial markets are likely to see frequent defaults this year despite the recent avoidance of such a measure by a trust product, a senior economist with The Economist Group in China warned on Monday.

Xu Sitao, chief representative of The Economist Group in China, said that the liquidity squeezes of June and December 2013 will become a "common scenario" this year and the default of trust or wealth management products will continue to emerge.

"At present, shadow banking is worth paying the greatest attention to in China. China must step up reforms in financial sectors, otherwise, the problem will be very worrisome," Xu said.