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Ant Group, which runs China's ubiquitous payment app Alipay, is setting up a consumer finance company in the southwestern city of Chongqing, adding a new heavyweight to China's booming consumer finance market.

Another reason is misinformation over monosodium glutamate. The flavor enhancer was demonized for years by campaigners using false science. They even came up with the term "Chinese restaurant syndrome" and claimed diners suffered a group of symptoms. This has since been exposed as racist hysteria and more restaurants are starting to embrace the additive, but it will take time for the unhealthy image to fade.

Apart from consumer subsidies, 30 million yuan worth of trade-in subsidies for home appliances and 20 million yuan subsidies for household appliances sold in rural areas were allocated for this month, according to the regional department of commerce.

Another cause of the rise is that those who bought their cars around the peak years of 2009 and 2010－when sales grew by more than 30 percent year-on-year－are replacing their cars.

Another service provider, Messe Frankfurt, one of the world's largest trade fair organizers, said it also eyes great potential in China.