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Apart from upgrading its industrial structure, Ningbo also needs to evolve as a city of higher strategical importance, said Xu.

Another natural outcome of the restrictions on collaboration with China is that the Chinese will turn to Europe, as export controls have had a similar effect, warned Bienenstock.

Another 863 less damaged houses will be reinforced, while houses that were slightly damaged, such as those with broken doors or windows, will be repaired within a week, said the team.

Apart from domestic institutions, overseas funds have begun to focus on small-cap stocks listed on the A-share market, market people said.

Another challenge is to find the right balance between government intervention and letting markets play a decisive role. Substantial progress has been made over the past two years; for instance, with reducing excess industrial capacity and the housing overhang, and government intervention played a critical role here. However, it is also broadly accepted that well-regulated and competitive markets are critical for increasing economic efficiency and productivity. This is exactly what China needs to achieve a high-income economy in the coming years.