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Although infrastructure spending will pile up local government debt, statistics suggest the risks are controllable, as China has been taking steps to expand financing channels for cash-strapped local governments.

Tembin will bring gales to the northeast of South China Sea, the Taiwan Strait, southern coast of Fujian Province and eastern coast of Guangdong Province. Heavy rain and storms will hit the coasts of Fujian and Guangdong, as well as in southern Taiwan.

Wenzhou, famous for its private businesses, was hit by a debt crisis last year after some 100 managers or heads of private companies were reported to have disappeared, committed suicide or declared bankruptcy for failing to repay the crippling debt in the underground financing market.

Traffic jams in Guangzhou have worsened recently. Average speeds during rush hours have slowed to 20 km per hour and are expected to become even slower. Growing motor vehicle emissions have also worsened the city's air quality.

The stocks have to be held for at least 36 months, the draft said.