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"Competition is intensifying among the different countries in the digital sector. We believe Beijing, as the nation's capital and science and technology center, should make its contribution on the matter," she said.

"Consumers in second-tier cities or even smaller ones usually have more spare income, as they are free from the pressures of housing and children's education compared with those in first-tier cities," said Jin Guangyang, CEO at Reindeer Beauty, a franchised cosmetic procedure clinic established earlier this year focusing on medium-to-small cities.

"China's digital transformation has developed at an unprecedented speed and has created huge and precious opportunities. The Chinese market has become one of our largest markets globally," said Kang Rong, vice-president of Microsoft Greater China.

"China's decline has softened slightly, which offers some relief after a bad year," said Canalys Analyst Mo Jia, adding that major vendors are gearing up to full speed, releasing new products and spending on marketing to maintain market share.

"Compared with the traditional online travel agencies, vacation rental platforms perform two key functions. One, they help landlords reduce operational and maintenance costs and also offer various value-added services to customers. Two, the platforms use sophisticated systems to support the entire social credit system," said Yu Fengxia, deputy director of the Sharing Economy Research Center, which is part of the SIC.