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Analysts said a recent weak dollar is one major reason for the continued gain of China's forex reserves.

Analysts attributed the IPO surge of Chinese tech firms to vibrant web-based industries. Innovations powered by internet technology are springing up and the group of tech-savvy young consumers is growing rapidly.

Analysts said that Wednesday's statement showed that maintaining a normal pace of approving share sales and restoring the capital market's fundraising function will be a key priority of the regulator, especially against the backdrop of cutting corporate debt and reducing leverage as key reform measures adopted by the central government.

And the lower living costs have given rise to higher fertility rates in these regions. The upshot, according to Morgan Stanley's estimates, is that smaller cities could account for 76 percent of overall urban population growth by 2030. That spells huge spending power in the long run.

Analyst said relations between the two countries are unlikely to improve in the short term.