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Anthony Indaimo, partner of international commercial law firm Withers, sees Chinese money still looking for European luxury brands, because Western brands, particularly those made in Italy, are seen as ultra-luxurious with a minimum 30 percent price premium in China.

Antonio Fatiguso, Beijing bureau chief of ANSA Agency, is interviewed on "Beijing in My Eyes-Conversations with Chief Correspondents" show broadcast by Radio Beijing International. Photo provided to chinadaily.com.cn

Another tax reform measure in the works is the higher personal income tax threshold, which was confirmed by Shi at the news conference. The current threshold is set at 3,500 yuan (3).

Any so-called "sanctions" by the US will never shake the determination of China to safeguard national sovereignty, security and development interests, as well as the long-term prosperity and stability of Hong Kong, it added.

Apart from focusing on middle-income earners, China's millennials will have more purchasing power because many of their parents not only own an apartment but are not weighed down excessively by accommodation or mortgage concerns, said Ma Yu, a researcher at the Beijing-based Chinese Academy of International Trade and Economic Cooperation.