The People's Bank of China has surprised many with its tolerance for market pain as it squeezes leverage in parts of the financial system.

But rest assured, China won't clamp down so hard it endangers President Xi Jinping's goal of keeping growth above 6.5%, according to economists from Morgan Stanley, Mizuho Securities and Oxford Economics.

"Some in global markets are concerned that China's monetary tightening risks nipping in the bud the current, still fragile, global recovery," says Louis Kuijs, Oxford's head of Asia economics in Hong Kong and a former World Bank and International Monetary Fund economist. "In our view the risk of an excessive policy tightening in China leading to a sharp reduction in economic growth is low, for the simple reason that the senior leadership does not want that to happen."