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Across the country, 127 state-level monotowns were unveiled in October last year by the Ministry of Housing and Urban-Rural Development (MOHURD).

Initiated in 2015, the reform has focused on five fronts -- pruning overcapacity, clearing up the large inventory of unsold homes, curbing debt levels, lowering business costs and tackling weak links.

He called on the two countries to expand common interests on the basis of mutual respect, equality and mutual benefit.

There is little possibility of China "favouring" any of its "friends" through the AIIB given its multilateral character and the fact that the quality of projects is the main criteria for funding, Palit added.