China late on Friday unveiled details of the long-term economic reforms agreed to at this month's Third Plenum, a key meeting of the country's top leaders.

The 60-point reform plan is seen paving the way for sweeping changes in the world's second-biggest economy as it tries to steer away from investment-led growth to a consumption-driven economy.

Here's what you need to know about the main reforms.

1) One-child policy relaxed: The controversial policy introduced in 1979 has contributed to falling birth rates. Now the policy is to be eased to allow couples to have two children if one the parents is an only child. Baby-product related stocks such as Goodbaby International soared in Hong Kong on Monday following the easing of the one-child policy.

"The reason they (China's leaders) have to change the one-child policy is because China has aging population and everybody knows an aging population needs to be supported," David Kuo, CEO at The Motley Fool Singapore, told CNBC.

(Read more: Economics behind China relaxing its one-child policy)

2) Welfare-system reformed: China said it would relax its system of household registration, known as the hukou system. Under this system, migrants give up the public services they are entitled to when they move to urban areas. Analysts say changing this system is a key step towards liberalizing the labor market, allowing the free movement of labor and encouraging urbanization.

"The urbanization policy change with the relaxation of the hukou policy is, according to some China watchers, the biggest reform since 1958," said Evan Lucas, market strategist at trading firm IG, in a note. "The largest cities such as Beijing, Shanghai, Guangzhou and Shenzhen will still have strict rules applied to it, however [the changes] will mean a more mobile labor force and an increase of workers into factories struggling with the demand of work needed."

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