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China's first and second-tier cities, having great potential for population agglomeration, produced 46.5 percent of the country's GDP with 25.5 percent of the total population, the report said.

China's financial market has accelerated its internationalization starting this year. In June, global equities index compiler MSCI announced the inclusion of China's A-shares on its benchmark Emerging Markets Index.

China's industrial output expanded to 7 percent in April, increasing from the 6-percent rise in the previous month and beating market expectations of around 6.4 percent, official data showed.

China's e-commerce giants, such as Alibaba and JD.com, have been earnestly involved in the sale of farm produce from poor villages, with marketing support and lower or no fees.

China's growing economic strength and improving market accessibility may potentially bring significant investment opportunities, as well as challenges, to global investors. Understanding China's role in equity allocation may be crucial to sound investment policy decisions.