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"For these cities, there is no longer a need to suppress real demand. These moves are not interpreted as signals of 'relaxing' but as natural responses to new conditions," she said.

"Financing for new projects should be better controlled," said the report, highlighting that financial institutions are forbidden from providing capital for projects without a stable cash flow or legal guarantees.

"Foreign companies are inclined to invest in China's high-end and consumer-oriented manufacturing and service business, as they are gradually moving low-end factories and heavily polluting businesses to other emerging markets," said Daniel Starta, managing director for China of the US-based consulting firm AT Kearney.

"For European companies, the treaty will help create a better investment climate. It will also drive a more balanced economic relationship between China and Europe," Vinck said.

"Following the issuance of the measures, many young people have called us from Taiwan, asking how they can take qualification exams for permission to practice certain professions such as medicine in the mainland. We told them to wait for the release of detailed implementation plans," said Yang Yizhou, vice-chairman of the All-China Federation of Taiwan Compatriots, on the sidelines of this year's session of the 13th National Committee of the Chinese People's Political Consultative Conference.