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But with the easing of risks and more supportive polices for the market and the real economy, Zhang was optimistic about the mid and long-term market prospects.

But those fears have been dispelled after the State Council, China's Cabinet, vowed to further reduce market restrictions for foreign companies in the banking, securities and insurance sectors.

By 3 pm on Thursday, there were three high-risk areas and 27 medium-risk communities in the city.

But, to treat this as a problem would be a folly because the other side of the coin is that the situation represents a potential gold mine as it has immense potential for development and future growth, he said.

Buyers of such a product will face the risk of not being legally protected, it added.