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"For it to work, it has got to be something that has wider ownership and acceptance than just being a Beijing initiative," he said.

"For example, Kawasaki, which is in Tokyo's metropolitan area, has been ranked top in the country for technological service, and Utsunomiya has been forged into a research, development and manufacturing base for robots and precision machinery in the area," said Zhu.

"Foreign investors prefer to buy shares of top players with solid fundamentals that are related to China's consumption and industrial upgrades. Such shares also deserve domestic investors' continuous attention."

"Generally, market sentiment and cross-border capital flows were stable, despite some vulnerabilities in global capital markets," E said.

"For firms of relatively better credit profiles and some large companies with their own businesses abroad, overseas bond issuance is a good choice, given the dollar appreciation and large spreads," said the bond department director.