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Apart from the fiscal side, the financial sector has also stepped up support to the real economy. By Wednesday, banks in Shanghai have offered up to 90 loans valued at 1.31 billion yuan to 48 key companies, with the weighted average interest rate coming in at 2.35 percent, said Li Jun, deputy director of the Shanghai financial services office.

Anyone who dares to use funds earmarked for public well-being for corrupt purposes will be held accountable, he said.

Apart from expanding the production capacity by 10 percent in its Shanghai plant this year, the company will open a new customer experience stores in Beijing in December, said Zha Sheng, general manager for Chinese operations of Vorwerk Group.

Another judge, Ozan Isinak, president of Keiretsu Forum Canada, said the competition has reached the point where it could actually result in actual transactions and business deals with partners in China.

Another factor was a rebound in the producer price index, which fell 3 percent year-on-year in June, compared with a 3.7 percent decline in May, the analysts said.