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Chen Qiaoshan, a medical analyst at Beijing-based market consultancy Analysys, said: "With the introduction of more favorable policies, the TCM sector may find more development opportunities."

Chen said the company plans to invest 3 billion yuan (4 million) to build a plant for mass production of the vehicles, and a further 5 billion yuan for developing more varieties of vehicles, as it foresaw strong demand for such products in future "smart cities."

Chen Jie, a professor who specializes in real estate and urban development at Shanghai Jiao Tong University, however, has a different view. "We can't simply correlate oil or fuel prices and home prices in this way without taking other factors into consideration, as the rise in commodity prices will increase the cost of daily consumption. And if it goes worse to harm the physical economy, the situation will get even worse as people will see their effective salary shrink. Some may even be out of work."

Chen Xiaohua, deputy Party chief of Huangpu, said the project is part of the district's efforts to construct an environmentally friendly transportation network.

Chen Yixin, director of the leading group, said at a news conference in Beijing on Tuesday that as of March, more than 79,000 people had been prosecuted, and trials are crucial at this stage of the campaign.