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"Foremost, this has been because of economic reform measures, notably the supply-side reforms, market access measures and financial de-risking measures. Fiscal policy has also been modestly proactive," he said.

"First, their increasing manpower costs increase their cost of doing business in China. This may at first seem bad for China's competitiveness but, in the longer term, higher wages also mean that companies have a more productive, higher skilled labor pool to hire from," said Yu. "This would allow them to move up the value chain."

"For example, if you look at the manufacturing sector today and compare it with the roles five years or a decade ago, they are fairly different. Chinese companies should continue to adapt this trend and embrace some new technologies to enrich their operations at both home and overseas," he said.

"Hainan is my second home. I met my lifelong love, enjoyed life and learned so much on the lively island," he said, adding that he was greatly impressed by the unique culture and hospitality of the island's people.

"Foreign banks including StanChart are greatly encouraged by the recent launch of policies by China to further open its financial markets," said Jerry Zhang, executive vice-chairman and chief executive officer of Standard Chartered Bank (China) Ltd.