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"China has one of the most vibrant venture capital and startup markets in the world," Thurston said, noting that the country's thriving technology, internet and e-commerce industries offer a fertile investment environment.

"But we had much faith in this area," he said. "For one thing, adjacent infrastructure was under construction.

"But public housing is not the best answer to deal with housing problems after construction," Yan said. "The government may introduce programs allowing tenants to first rent and then purchase, but at low prices."

"China and India will continue to maintain their dialogue and communication through military and diplomatic channels, including holding a new round of commander-level talks and a meeting of the Working Mechanism for Consultation and Coordination on China-India Border Affairs," he said.

"But the drag was moderate as Chinese regulatory authorities' determination and concrete measures to boost the market released last Friday have shored up investor sentiment," Hong said.