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The more transparent new pricing system also helps curb speculation and hoarding, he said.

Marco Cairoli, deputy president of Shanghai Roche Pharmaceuticals Ltd., a joint venture of Swiss drugmaker Roche Group, said the FTA will be very important, adding that he hopes it will go into effect as soon as possible.

"It was a lightning bolt for us. However, I do not regret letting my son become a policeman. His blood will not be in vain and I am proud of him," said Enwaer Ehet.

He suggested that some of the excess capacity could be absorbed through mergers and reorganization, improving companies' capacity for innovation and encouraging Chinese businesses to expand overseas.

Assuming prices would fall, Wang sold his home just two days later, before seeing how significantly prices would rise.